Alligator Spread

Business, Legal & Accounting Glossary

Definition: Alligator Spread

Alligator Spread

Quick Summary of Alligator Spread

A position consisting of a combination of put options and call options that collectively create commissions so high that it is almost impossible to turn a profit regardless of which direction the underlier moves. The term originates from the idea of the spread “eating the investor alive.”

Related Phrases

butterfly spread
even spread
horizontal spread
vertical spread

Cite Term

To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
Modern Language Association (MLA):
Alligator Spread. Payroll & Accounting Heaven Ltd. November 29, 2021
Chicago Manual of Style (CMS):
Alligator Spread. Payroll & Accounting Heaven Ltd. (accessed: November 29, 2021).
American Psychological Association (APA):
Alligator Spread. Retrieved November 29, 2021, from website:

Definition Sources

Definitions for Alligator Spread are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th October, 2021 | 0 Views.