front spread

Definition of "front spread"
  1. A type of trading strategy where more options are sold than bought, usually used when volatility is expected to decrease
How to use "front spread" in a sentence
  1. When the market predicted a calm period ahead, many traders considered using a front spread.
  2. Under certain market conditions, a front spread can prove to be a profitable strategy.
  3. To guard against a decrease in volatility, John decided a front spread was the best course of action.

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