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


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Alligator Spread. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. November 29, 2021 https://payrollheaven.com/define/alligator-spread/.
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Alligator Spread. PayrollHeaven.com. Payroll & Accounting Heaven Ltd. https://payrollheaven.com/define/alligator-spread/ (accessed: November 29, 2021).
American Psychological Association (APA):
Alligator Spread. PayrollHeaven.com. Retrieved November 29, 2021, from PayrollHeaven.com website: https://payrollheaven.com/define/alligator-spread/

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.