JJ69420's definitions

Ghetto Spread

Its like a debit spread, but you buy the option first, and when price goes up (in the case of a call) or down ( in the case of a put) you sell another for the same or more of what you paid for the first one. That way, even though you maxed your profits, you eliminate the risk.

Finance Bro 1: "Bro I think TSLA is going to the moon
Finance Bro 2: " Yeah am probably going to open a ghetto spread, that way, it it goes down, I eliminated the risk.

by JJ69420 September 20, 2020