Alligator Spread

A term referring to an unprofitable spread regardless of favorable market movements. This loss is due entirely to large commissions charged upon the transactions.


Don't get caught in an alligator spread! This type of scenario will lead to a losing position even if you predict the market correctly.



Options Basics Tutorial - An introduction to the world of options, covering everything from primary concepts to how options work and why you might use them.
Related Terms

Broker

Commission

Market

Option

Spread

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