horizontal spread

Definition of "horizontal spread"
  1. An approach involving buying and selling options of identical strike price and class, but with varying expiry dates
How to use "horizontal spread" in a sentence
  1. Jill's broker taught her to use a horizontal spread to manage risks in volatile markets.
  2. Considering the unstable market conditions, the horizontal spread can be an effective strategy.
  3. Using the horizontal spread, the trader hoped to take advantage of the different expiration dates.

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