Atlantic Spread
Definition of 'Atlantic Spread'An options trading strategy that involves purchasing both an American option and a European option, in order to take both sides of a position. Each option is referred to as a "leg" of the spread; the Greeks Delta, Vega and Theta can be used to evaluate the spread's risk. |
|
Investopedia explains 'Atlantic Spread'The Atlantic spread's name comes from the body of water that separates the United States and Europe. However, the terms "American option" and "European option" don't really have anything to do with the countries they are named after. An American option is simply one that can be exercised at any time, while a European option is one that can only be exercised at maturity. The latter is usually considered less valuable, since it is less flexible. An option could be more valuable if exercised early, depending on what happens in the market, and American options provide for that possibility. |
Directory (Option Strategy)
-
Alligator Spread
-
Atlantic Spread
-
Back Fee
-
Backspread
-
Bailard, Biehl And Kaiser Five-Way Model
-
Bear Call Spread
-
Bear Put Spread
-
Bear Spread
-
Bear Straddle
-
Box Spread
-
Bull Call Spread
-
Bull Put Spread
-
Bull Spread
-
Bullet Trade
-
Butterfly Spread
-
Buy A Spread
-
Calendar Spread
-
Call Ratio Backspread
-
Collar
-
Collar Agreement
-
Condor Spread
-
Contingent Order
-
Conversion Arbitrage
-
Covered Call
-
Covered Combination
-
Covered Straddle
-
Credit Spread
-
Death Put
-
Debit Spread
-
Delta Hedging
-
Delta Neutral
-
Delta Spread
-
Diagonal Spread
-
Dividend Arbitrage
-
Double One-Touch Option
-
Fence (Options)
-
Fiduciary Call
-
Fixed Dollar Value Collar
-
FMAN
-
Forex Hedge
-
Forex Option & Currency Trading Options
-
Form 6781: Gains And Losses From Section ...
-
Front Fee
-
Gut Spread
-
Heston Model
-
Horizontal Spread
-
Implied Volatility - IV
-
Interest Rate Collar
-
Iron Butterfly
-
Iron Condor
-
Leg
-
Leg Out
-
Long Jelly Roll
-
Long Leg
-
Long Put
-
Long Straddle
-
Long-Term Equity Anticipation Securities ...
-
Married Put
-
Modidor
-
Multi Index Option
-
Multi-Leg Options Order
-
Naked Call
-
Naked Option
-
Naked Position
-
Naked Put
-
Negative Butterfly
-
Net Option Premium
-
Neutral
-
Option Premium
-
Outright Option
-
Overwrite
-
Overwriting
-
Positive Butterfly
-
Protective Put
-
Put Calendar
-
Put On A Call
-
Put On A Put
-
Put Ratio Backspread
-
Put To Seller
-
Ratio Call Write
-
Ratio Spread
-
Reverse Calendar Spread
-
Reverse Conversion
-
Risk Reversal
-
Roll Down
-
Roll Forward
-
Roll Up
-
Seagull Option
-
Sell To Open
-
Series 4
-
Short Leg
-
Short Straddle
-
Straddle
-
Strangle
-
Swing Option
-
Synthetic Dividend
-
Variable Ratio Write
-
VIX Option
-
Writing An Option
-
Zero Cost Collar
-
Zomma
Related Definitions
Articles Of Interest
-
The Basics Of The Bid-Ask Spread
The bid-ask spread is essentially a negotiation in progress. To be successful, traders must be willing to take a stand and walk away in the bid-ask process through limit orders. -
Bear Put Spreads: A Roaring Alternative To Short Selling
This strategy allows you to stop chasing losses when you're feeling bearish. -
Out-Of-The-Money Put Time Spreads
Learn about this low-risk, bearish options strategy used to speculate on major market declines. -
Vertical Bull and Bear Credit Spreads
This trading strategy is an excellent limited-risk strategy that can be used with equity as well as commodity and futures options. -
Profiting From Stock Declines: Bear Put Spread Vs. Long Put
If you're bearish, you should compare the risk/reward characteristics of these two strategies. -
6 Asset Allocation Strategies That Work
Your portfolio's asset mix is a key factor in whether it's profitable. Find out how to get this delicate balance right. -
American Vs. European Options
These two options have many similar characteristics, but it's the differences that are important. -
Pay Attention To The Proxy Statement
Don't overlook this overview of a company's well-being. -
How Risk Free Is The Risk-Free Rate Of Return?
This rate is rarely questioned - unless the economy falls into disarray. -
Top 4 Most Scandalous Insider Trading Debacles
Here we look at some of the landmark incidents of insider trading.
Free Annual Reports