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Short Calendar

A calendar spread that involves the purchase of an option with a further expiration and the sale of an option...

Put Ratio Vertical Spread

A ratio vertical spread that is constructed using put options. This involves buying one in-the-money put option and simultaneously selling...

Ratio Put Spread

A variant on a bear put spread, and a strategy similar to the bull ratio spread in almost all aspects...

Ratio Backspread

An option trading strategy (a credit spread) which involves selling at-the-money and in-the-money options and purchasing a larger number of...

Call Backspread

An options trading strategy which involves selling a number of in-the-money calls at a set strike and simultaneously buying a...

Credit Risk Spread

In relation to credit default swaps (CDS) and other similar derivatives involving a deal of credit risk, it is the...

Credit Risk Spread

In connection with bonds and other instruments involving a deal of credit risk, it is the part of risk premium...

Par CDS Spread

The value of the running spread that makes the value of a CDS (credit default swap) contract equal to par....

Long Leg

The part of an option spread that constitutes an obligation to buy the underlying asset. It is the side of...

Long Gut Spread

A gut spread that is established by combining long in-the-money calls and long in-the-money puts, with all options having the...