Alligator spread

Definition:

The term used to describe a spread in the options market that generates such a large commission that the client is unlikely to make a profit even if the markets move as the investor anticipated.

Investing Essentials


Copyright © 2011 Campbell R. Harvey, Professor of Finance, Fuqua School of Business at Duke University

Term of the Day

Across the board

Movement or trend in the stock market that causes all stocks in all sectors to move in the same direction.

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