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Finance Glossary

Just call us Bond. Amortized bond.

Over 700 finance terms, Shmooped to perfection.

Alligator Spread

Definition:

This could refer to a gourmet lunch in Louisiana or a centerfold of glossy pages in PlayGator magazine.

In finance, an alligator spread refers to a situation where huge commissions gobble up any profits that could have happened with a trade. Usually, it happens when put options and call options are used to give the investor a chance to buy at a specific price later on.