alligator spread

alligator spread definition - finance
A combination of call options and put options that produces excessively high commissions, making it nearly impossible for an investor to make a profit. The term is so named because such a combination, like an alligator, can eat an investor alive.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

Comments
Improve this definition.
Do you have more to add? Share your linguistic knowledge or observation.
/Register to save your comments.