The trading of options of the same class at the same time in order to profit from changes in the size of the spread between different options.
The trading of options of the same class at the same time in order to profit from changes in the siz
The simultaneous purchase and sale of a pair of calls (or puts) in the same metal but at different strike prices or different expiration dates, or both. The option equivalent of a carry.
An option spread is an options strategy that requires the opening two opposite positions to hedge against risk. With an options spread strategy, investors buy and sell the same number of options on an underlying asset, but at a different strike price and maturity.