What is Ghetto Spread?
Ghetto Spread - what is it?
What does "Ghetto Spread" mean?
A stock trading strategy invented by the Trading Fraternity meant to make plays "free". This strategy involves purchasing a call or put then locking in profit by selling an option further out the money.
We bought 2 TLT February 12 165 calls for .21 then ghetto spread it making free by selling 1 February 12 170 call for .42
Ghetto Spread - what does it mean?
a homemade meal put together for a large gathering of poor (family and friends). This concoction is not healthy, but it is EXTREMELY delicious.
Boy: "I put flammable Cheetos in the ghetto spread"
Ghetto Spread - meaning
What is a "ghetto spread"? A ghetto spread is exactly like a debit spread, except you don't buy/sell both legs at the same time. First, you buy a long call, then wait for the premium on your short call to be higher than the premium of your long call, and sell it.
Ghetto Spread - definition
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
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