An OPTION SPREAD that is unprofitable even in favorable market conditions, as a result of large BROKER commissions or fees. An alligator spread is often comprised of many discrete transactions, which generate excessive costs and detract from any profits.

More On This Topic

Link to This Definition
Did you find this definition of ALLIGATOR SPREAD helpful? You can share it by copying the code below and adding it to your blog or web page.
Written and fact checked by The Law Dictionary