a technique in trading options in which an alternative is bought at a workout price above compared to the underlying instrument and at the same time an alternative comes at a workout price below that of the underlying instrument, both with regards to exactly the same expiry thirty days. This applies to either call options or put options.
n OPTION method that tries to benefit from a BEAR MARKETPLACE; spreads could be organized as bearish CALL SPREADS (buy of a CALL OPTION and sale of a second call, where the brief call is struck closertothemoney) or bearish PUT SPREADS (purchase of a PUT CHOICE and purchase of a second place, where in actuality the long put is struck closertothemoney). Also called CASH SCATTER, PRICE SCATTER, VERTICAL SPREAD. See additionally BULL SPREAD.