BACKSPREAD
\bˈakspɹɛd], \bˈakspɹɛd], \b_ˈa_k_s_p_ɹ_ɛ_d]\
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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.
By Henry Campbell Black