The Law Dictionary

Your Free Online Legal Dictionary • Featuring Black’s Law Dictionary, 2nd Ed.

BACKSPREAD Definition & Legal Meaning

Law dictionary entry - legal definition of embargo

Definition & Citations:

An OPTION strategy designed to take advantage of VOLATILITY. A LONG back spread is created through the sale of a smaller quantity of closertothemoney PUT OPTIONS or CALL OPTIONS and the purchase of a larger quantity of fartherfromthemoney puts or calls. See also RATIO VERTICAL SPREAD.

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