volatility spread

Definition of "volatility spread"
  1. An option spread strategy that focuses on anticipating changes in market volatility rather than the market's movement direction
How to use "volatility spread" in a sentence
  1. Given the uncertainty in the market, the trader decided to implement a volatility spread to mitigate the risk.
  2. The volatility spread technique was utilized since the direction of the market was difficult to predict.
  3. By employing a volatility spread, she was able to profit from the heightened variability of the market.

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