Thursday, November 1, 2007

Alligator Spread

Alligator Spread

A position consisting of a combination of put options and call optionsthat collectively create commissions so high that it is almostimpossible to turn a profit regardless of which direction theunderlier moves. The term originates from the idea of the spread"eating the investor alive.".

1 comment:

Anonymous said...

Good work Rajnish keep it up....