A three-legged option spread in which each leg has the same expiration date but different strike prices. This strategy is basically a combination of a bull and bear spread.

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Pairs trading is a strategy that uses two highly correlated financial instruments (eg Coca-Cola and Pepsi) whose price relationship has divergerged outside of the historical range. In buying one and selling the other, the strategy aims to profit from the price reverting back to as the mean trend as

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See Bull Spread.

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A spread between the municipal bond futures contract and the treasury bond contract, also known as munis over bonds.

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The Time Spread Strategy consists of buying or selling an option with the same exercise (strike) price but different expirations in an attempt to profit from divergence in the premiums of the options. Also known as a Calendar Spread or Horizontal Spread.

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The selling of a nearby option and buying of a more deferred option with the same strike price. Also called Horizontal Spread.

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The difference between the price of the three-month US Treasury Bill futures contract and the price of the three-month Eurodollar time deposit futures contract with the same expiration month.

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A strategy that combines the sale of stock at a loss for tax purposes and the simultaneous sale of a put – the premium acting to offset the loss from the stock sale.

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A futures spread trade involving the buying (selling) of a five-year Treasury note futures contract and the selling (buying) of a ten-year Treasury note futures contract.

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A futures spread trade involving the buying ( or selling) of a five-year Treasury notefutures contract and the selling ( or buying) of a long-term (15-30 year) Treasury bondfutures contract.

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