Alligator Spread

What Does Alligator Spread Mean?
Alligator spread refers to a non profitable spread in situations of encouraging market trend. Such a loss making situation is a resultant of high commission charges on the transactions.

How Is Alligator Spread Applied in Options Market?
This is a situation where in losing positions can appear in spite of correct moves being predicted for the market. While trading in options, you need to be careful of such situations.

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August 31, 2008 · Filed Under Options Trading

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