FT MarketWatch

Alligator spread

A Position consisting of a Combination of Put options and Call options that collectively create commissions so High that it is almost impossible to turn a Profit regardless of which direction the Underlier moves. The Term originates from the idea of the Spread "eating the investor alive."

Related Terms: 13 Commission, Call, Call option, Combination, High, Option, Profit, Position, Put, Put option, Spread, Term, Underlier
Other Related Pages: Category: Options Starting With: A
Semi Related Terms: 552 CLICK HERE TO VIEW
52-week high, Accrual of discount, Amortization of premium, At par, All or any part, At best, At call, All-risks coverage, At risk, Add-on service, Abstract of title, Action to quiet title, As is, Assignment to creditors, Attorney in fact, Amortization term, Assignment of mortgage, A shares, Assets under management, Alligator spread, American option, American-style option, Asian option, At the money, Average option, Across the board, Additional paid-in capital, Ad valorem, Against the box, At the bell, At the close, At the figure, At the full, At the market, At the opening order, Automated Pricing and Reporting System, Away from the market, Accredited investor, Angel investor, Below the line, Book profit, Books of final entry, Books of original entry, Banking Act of 1933, Bid/ask spread, Bid-to-cover ratio, Bureau of Public Debt, Brought over the wall, Buying on margin, Buy on close, Buy on opening, Buy the book, Balance of payments, Board of Governors, Breaking the syndicate, Bill of exchange, Bill of sale, Breach of trust, By the book, Bank term loan, B shares, Butterfly spread, Buy and write, Box spread, Breadth-of-market theory, Beat the gun, Cost Of Goods Sold, Cost of sales, Commission, Call, Call date, Call price, Call protection, Call risk, Certificate of Participation, Combination bond, Committee on Uniform Securities Identification Procedures, Conversion option, Call money rate, Code of procedure, Commission house, Capitalization of income, Cost of Living Adjustment, Cost-of-living index, Council of Economic Advisers, Cash and carry trade, Chasing the market, Cheapest to deliver, Chicago Board of Trade, Commodity Futures Trading Commission, Commodity-product spread, Crack spread, Crush spread, Combination plans, Convertible term insurance, Cost-of-living rider, Certificate of stock, Chicago Board Options Exchange, Cost of carry, Certificate of title, Cancellation of debt, Certificate of Claim, Cost of debt capital, Cost of funds, Collective trust, C shares, Calendar spread, Call option, Call ratio backspread, Call swaption, Class of options, Close to the money, Combination, Covered call, Covered option, Covered put, Credit spread, Certificate of Occupancy, Cloud on title, Cash or Deferred Arrangement, Collectively bargained plan, Combination annuity, Class A Shares, Class B Shares, Crash of 1929, Crash of 1987, Child and dependent care credit, Coefficient of determination, Cup and handle, Certificate of delivery, Close a position, Cornering the market, Curbs in, Direct profit, Deposit in transit, Direct deposit, Direct sends, Date of issue, Date of payment, Direct issuer, Direct paper, Division of Enforcement, Division of Investment Management, Division of Market Regulation, Date of record, Dividend in arrears, Desk (the), Division of labor, Decreasing term life, Direct financing, Direct placement, Direct Public Offering, De-escalation clause, De facto, Durable Power of Attorney, Date of maturity, Debtor in possession, Debtor-in-possession financing, Deed of Release, Deed of Trust, Direct lease, Discharge of bankruptcy, Discharge of lien, Due-on-sale clause, Debit spread, Deep in the money, Deep out of the money, Delta spread, Diagonal spread, Deed of Surrender, Department of Housing and Urban Development, Direct rollover, Direct transfer, Direct participation program, Dogs of the Dow, Daily high, Depth of market, Eurodollar certificate of deposit, Embedded option, Escrowed to maturity, Either-or order, E-mini, Exchange of spot, Equity option, Ex-all, European-style option, Exchange-traded option, Employee Retirement Income Security Act of 1974, Even spread, First In First Out, Federal Savings and Loan Association, First call date, Flight to quality, Flow of funds, Federal Call, Fill or kill, Front-ending an order, Foreign currency option, Forward P/E, Factors of production, Favorable balance of trade, Federal Trade Commission, Futures option, Foreign direct investment, Form S-1, Friends and family offering, Full faith and credit, Family of funds, Fund of funds, Far option, Free and clear, Free right of exchange, Federal ID Number, Gross profit, Gross profit margin, G-7, General Agreement on Tariffs and Trade, G-8, Gross spread, Growth and income fund, Gather in the stops, High-grade bond, High yield, Hart-Scott-Rodino Act of 1976, Hit the bid, House call, House of issue, Health Insurance Portability and Accountability Act, High, High-flyer, High-tech stock, Holder in due course, High credit, High-ratio mortgage, Home equity line of credit, Horizontal spread, Head and shoulders, High-low index, Hammering the market, Held at the opening, Holding the market, In escrow, Intermediate-term, In-house, Investment Advisor Act of 1940, Investment Company Act of 1940, In line, Intercommodity spread, Interdelivery spread, Intermarket spread, Intracommodity spread, Insider Trading sanctions Act of 1984, Internal Rate of Return, Investor relations, Indication of interest, In intestacy, In play, In-process research and development, Index option, Interest rate option, I/O strip, In-service withdrawal, Imbalance of orders, In and out, Individual investor, Inside spread, Institutional investor, In sympathy, In the tank, Jointly and severally, Jumping the gun, Joint and several liability, Joint and survivor annuity, Knock-out option, Last In First Out, Lender of last resort, Law of one price, Long position, Long-term, Lending at a rate, Limit-on-close order, Law of demand, Law of supply, Limit move, London International Financial Futures and Options Exchange, Level term insurance, Long-term care insurance, Long-term debt, Long-Term Equity Anticipation Securities, Letter of comment, Line of credit, Loan-to-cost, Loan-to-value, Lock-in, Long-term mortgage, Lapsed option, Listed option, Long-term lease, Leading the market, Locked in, Long-term gain or loss, Level I quotes, Medium-term, Medium-term bond, Mob spread, Maintenance call, Make a market, Margin call, Market maker spread, Market on close order, Mark-to-market, Medium of exchange, Marginal propensity to consume, Most distant month, Money at call, Married put, Most active, Net profit, Net profit margin, Negotiable certificate of deposit, Negotiable Order of Withdrawal, Notice of Sale, National Association of Securities Dealers, National Association of Securities Dealers Automated Quotations system, Non-equity option, Null and void, Notice of Default, Naked call, Naked option, Naked put, Near option, Neutral spread, Non-qualified stock option, Non-statutory stock option, National Association of Real Estate Investment Trusts, Naked position, Net position, New high, Nonaccredited investor, Off the books, Other long term liabilities, Office of Thrift Supervision, Out-of-favor, Over-the-Counter, On-floor order, On margin, Option account, Or better, Operating profit margin, Option, Opinion of title, On account, On-the-spot loan, Option income fund, Option chain, Option contract, Option holder, Option margin, Option pool, Option premium, Option price, Option pricing curve, Options Clearing Corporation, Option series, Option spread, Options Prices Reporting Authority, Option writer, Out of the money, Old age, survivors, and disability insurance, On-balance volume, On close, On open, On the opening, Open position, Option exchange, Pooling of interests, Pre-depreciation profit, Pre-tax profit margin, Profit, Profit and loss statement, Profit margin, Pro forma, Payment-in-kind security, Price Value of a Basis Point, Provisional call feature, Put bond, Put provision, Position, P&L, Profit warning, Position trader, Pre-existing conditions, Power of Attorney, Prioritization of debt, Perpendicular spread, Physical option, Position limit, Price spread, Protective put, Protective put buying, Put, Put option, Put swaption, Put warrant, Profit-sharing, Paid-in capital, Paid-in surplus, Passive investor, Pre-syndicate bid, Private Investment in Public Equity, Preservation of capital, Put ratio backspread, Point-and-figure chart, Profit ratio, Painting the tape, Paper profit, Profit-taking, Put/call ratio, Quality spread, Qualified institutional investor, Quick turn, Reports and Records, Return of capital, Return on Capital, Return on Invested Capital, Return on Total Assets, Reading the tape, Regulation D, Regulation G, Regulation T, Regulation U, Round of funding, Rules of Fair Practice, Rate of exchange, Reciprocal of European terms, Round turn, Regulation A, Right of first refusal, Right of rescission, Right to Know, Revolving line of credit, Right of recourse, Rule of 78, Ratio calendar combination, Ratio calendar spread, Ratio spread, Registered options principal, Right of redemption, Retirement Equity Act of 1984, Return on Capital Employed, Rate of return, Realized profit, Real rate of return, Retail investor, Selling, General and Administrative Expenses, SG&A, Savings and Loan, Short-term reserves, Sight letter of credit, S&L, Securities and Exchange Commission, Short-term, Securities Investor Protection Corporation, Segregation of securities, Sell the book, Split commission, Standard of living, Second-to-die insurance, Settlement options, Stock option, Stock option plan, Statute of Limitations, Sale and leaseback, Satisfaction of debt, Staggered board of directors, Selling the spread, Single option, Spread option, Synthetic put, Selling short against the box, Shorting against the box, Short position, S Corporation, Short-term gain or loss, Subchapter M, Subchapter S Corporation, Schedule C, Securities Act of 1933, Securities Acts Amendments of 1975, Securities Exchange Act of 1934, Seek a market, Small investor, Sophisticated investor, S&P phenomenon, Spread, Stop and reverse, Term CD, T-Bill, Term, Term bond, Term to maturity, Treasury Direct, Take a position, Trailing P/E, Term insurance, Tenancy by the entirety, TED spread, Term deposit, Term loan, Truth in Lending, Term trust, Time spread, Tenancy at will, Top hat plan, The Street, Timing the market, Taxpayer Relief Act of 1997, Tax Reform Act of 1986, Tax Reform Act of 1993, Trading profit, Take a bath, Term repo, Term sheet, U.S. Government Agency Security, U.S. Savings Bond, U.S. Treasury, U.S. Treasury Bill, U.S. Treasury Bond, U.S. Treasury Note, U.S. Treasury Securities, Underwriting spread, Unappropriated profit, Underlier, Uncovered call, Uncovered option, Uncovered put, Unit of trade, Unit of trading, Unrealized profit, Vertical spread, Waiver of premium, Widow-and-orphan stock, W-2 Form, W formation, When, as, and if issued, X or XD, Year-To-Date, Yield spread, Yield to call, Yield to maturity, Yield to worst, Y shares