A strategy that involves a position in one or more options so that the cost of buying an option is funded entirely or in part by selling another option in the same underlying. Also called spreading.
Similar Matches
Buy and hold strategy
Buy and hold strategy A passive investment strategy with no active buying and selling of stocks from the time the portfolio is created until the end of the investment horizon.
Buy and write strategy
Buy and write strategy An options strategy that calls for the
purchase of stocks and the writing of covered call options on them.
Combination strategy
Combination strategy A strategy in which a put and call with the same strike price and expiration are either both bought or both sold. Related: Straddle