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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.
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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.
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Search results for 'Atlantic Spread'
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http://www.investopedia.com/articles/07/stock-exchange-history.asp
... made trades more efficient and reduced the bid-ask spread - a spread the NYSE ... itself
and by merging with Euronext to form the first trans-Atlantic exchange. ...
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http://www.investopedia.com/articles/fundamental-analysis/12/Evolution-of-the-gaming-market.asp
... As gaming spread and Prohibition was passed, organized crime saw a new ... In 1976, Atlantic
City, New Jersey legalized casino gaming to spur investment and ...
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http://stocks.investopedia.com/stock-analysis/2011/Rayonier-To-Invest-In-Forest-Resources-RYN-PCH-WY-MWV1026.aspx
... Most of the timberland holdings are in the Atlantic and Gulf Coast regions of the
United ... The land is spread across Louisiana, Mississippi, Alabama and Oklahoma ...
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http://stocks.investopedia.com/stock-analysis/2011/Toll-Teetering-TOL-PHM-DHI-HOV-BZH-KBH0825.aspx
... analyst guess, but investors should note that there was a pretty wide spread for
revenue ... up 74%), but a sizable drop in the West and Mid-Atlantic regions, and ...
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