Straddle vs. Spread — What's the Difference?

In finance, a straddle strategy refers to two transactions that share the same security, with positions that offset one another. One holds long risk, the other short.

Open out (something) so as to extend its surface area, width, or length

To stand or sit with a leg on each side of; bestride

Extend over a large or increasing area

To be on both sides of; extend over or across

Apply (a substance) to an object or surface in an even layer

To appear to favor both sides of (an issue).

Lay (a table) for a meal.

To fire shots behind and in front of (a target) in order to determine the range.

The fact or process of spreading over an area

To walk, stand, or sit with the legs wide apart, especially to sit astride.

The extent, width, or area covered by something

To spread out in a disorderly way; sprawl.

The range or variety of something

To appear to favor both sides of an issue.

A soft paste that can be applied in a layer to bread or other food

To place a bet in poker before the cards are dealt that is twice the amount of the big blind when one is immediately to the left of the big blind.

An article or advertisement covering several columns or pages of a newspaper or magazine, especially one on two facing pages

The act or posture of sitting astride.

A large and impressively elaborate meal

An equivocal or a noncommittal position.

A bedspread

The simultaneous purchase or sale of a call option and a put option with the same strike price and expiration date as a means of speculating on the degree of price change in the underlying asset.

To open to a fuller extent or width; stretch

The bet made when straddling in poker.

To make wider the gap between; move farther apart

(transitive) To sit or stand with a leg on each side of something; to sit astride.

To distribute over a surface in a layer

(transitive) To be on both sides of something; to have parts that are in different places, regions, etc.

To cover with a layer

(transitive) To consider or favor two apparently opposite sides; to be noncommittal.

To distribute widely

(transitive) To form a disorderly sprawl; to spread out irregularly.

To make a wide or extensive arrangement of

(military) To fire successive artillery shots in front of and behind of a target, especially in order to determine its range (the term "bracket" is often used instead).

To exhibit or display the full extent of

(poker) To place a voluntary raise prior to receiving cards (only by the first player after the blinds).

To cause to become widely seen or known; scatter or disseminate

(intransitive) To stand with the ends staggered; said of the spokes of a wagon wheel where they join the hub.

To prepare (a table) for eating; set.

(economy) To execute a commodities market spread.

To arrange (food or a meal) on a table.

A posture in which one straddles something.

To flatten (a rivet end, for example) by pounding.

(military) A pair or salvo of successive artillery shots falling both in front of and behind a target.

To be extended or enlarged

(finance) An investment strategy involving simultaneous trade with put and call options on the same security at the same strike price, giving a non-directional position sensitive to volatility.

To move over an area, be distributed, or be widely dispersed

(poker) A voluntary raise made prior to receiving cards by the first player after the blinds.

To become known or prevalent over a wide area

(mining) A vertical mine-timber supporting a set.

To be exhibited, displayed, or visible in broad or full extent

Astride.

To become or admit of being distributed in a layer

To part the legs wide; to stand or to walk with the legs far apart.

To become separated; be forced farther apart

To stand with the ends staggered; - said of the spokes of a wagon wheel where they join the hub.

The act or process of spreading

To place one leg on one side and the other on the other side of; to stand or sit astride of; as, to straddle a fence or a horse.

Dissemination, as of news; diffusion.

The act of standing, sitting, or walking, with the feet far apart.

An open area of land; an expanse.

The position, or the distance between the feet, of one who straddles; as, a wide straddle.

A ranch, farm, or estate.

A stock option giving the holder the double privilege of a "put" and a "call," i. e., securing to the buyer of the option the right either to demand of the seller at a certain price, within a certain time, certain securities, or to require him to take at the same price, and within the same time, the same securities.

The extent or limit to which something is or can be spread

A noncommittal or equivocal position

A cloth covering for a bed, table, or other piece of furniture.

A gymnastic exercise performed with the legs straddling the parallel bars

(Informal) An abundant meal laid out on a table.

The act of sitting or standing astride

A food to be spread on bread or crackers.

The option to buy or sell a given stock (or stock index or commodity future) at a given price before a given date; consists of an equal number of put and call options

Two facing pages of a magazine, newspaper, or book, considered as a unit.

Sit or stand astride of

An article or advertisement running across two or more columns of a newspaper or magazine.

Range or extend over; occupy a certain area;

A difference, as between two figures or totals

Be noncommittal

A position taken in two or more options or futures contracts in order to profit from a change in their relative prices.

The difference between the price asked and bid for a particular security.

The difference in yields between two fixed-income securities, as between short-term and long-term bonds.

A number of points offered to equalize the chances of winning in a wager on a competition, usually between sports teams. Also called point spread.

Wingspread.

(transitive) To stretch out, open out (a material etc.) so that it more fully covers a given area of space.

(transitive) To extend (individual rays, limbs etc.); to stretch out in varying or opposing directions.

(transitive) To disperse, to scatter or distribute over a given area.

(intransitive) To proliferate; to become more widely present, to be disseminated.

(transitive) To disseminate; to cause to proliferate, to make (something) widely known or present.

(intransitive) To take up a larger area or space; to expand, be extended.

(transitive) To smear, to distribute in a thin layer.

(transitive) To cover (something) with a thin layer of some substance, as of butter.

To prepare; to set and furnish with provisions.

To open one’s legs, especially for sexual favours.

The act of spreading.

Something that has been spread.

(cartomancy) A layout, pattern or design of cards arranged for a reading.

An expanse of land.

A large tract of land used to raise livestock; a cattle ranch.

A piece of material used as a cover (such as a bedspread).

A large meal, especially one laid out on a table.

(bread, etc.) Any form of food designed to be spread, such as butters or jams.

(military) A set of multiple torpedoes launched on side-by-side, slowly-diverging paths toward one or more enemy ships.

Improvised by inmates from various ingredients to relieve the tedium of prison food.

An item in a newspaper or magazine that occupies more than one column or page.

Two facing pages in a book, newspaper etc.

A numerical difference.

The difference between the wholesale and retail prices.

The difference between the price of a futures month and the price of another month of the same commodity.

The purchase of a futures contract of one delivery month against the sale of another futures delivery month of the same commodity.

The purchase of one delivery month of one commodity against the sale of that same delivery month of a different commodity.

(trading) An arbitrage transaction of the same commodity in two markets, executed to take advantage of a profit from price discrepancies.

(trading) The difference between bidding and asking price.

(finance) The difference between the prices of two similar items.

(geometry) An unlimited expanse of discontinuous points.

The surface in proportion to the depth of a cut gemstone.

Excessive width of the trails of ink written on overly absorbent paper.

To extend in length and breadth, or in breadth only; to stretch or expand to a broad or broader surface or extent; to open; to unfurl; as, to spread a carpet; to spread a tent or a sail.

To extend so as to cover something; to extend to a great or greater extent in every direction; to cause to fill or cover a wide or wider space.

To divulge; to publish, as news or fame; to cause to be more extensively known; to disseminate; to make known fully; as, to spread a report; - often accompanied by abroad.

To propagate; to cause to affect great numbers; as, to spread a disease.

To diffuse, as emanations or effluvia; to emit; as, odoriferous plants spread their fragrance.

To strew; to scatter over a surface; as, to spread manure; to spread lime on the ground.

To prepare; to set and furnish with provisions; as, to spread a table.

To extend in length and breadth in all directions, or in breadth only; to be extended or stretched; to expand.

To be extended by drawing or beating; as, some metals spread with difficulty.

To be made known more extensively, as news.

To be propagated from one to another; as, the disease spread into all parts of the city.

Extent; compass.

Expansion of parts.

A cloth used as a cover for a table or a bed.

A table, as spread or furnished with a meal; hence, an entertainment of food; a feast.

A privilege which one person buys of another, of demanding certain shares of stock at a certain price, or of delivering the same shares of stock at another price, within a time agreed upon.

An unlimited expanse of discontinuous points.

An arbitrage transaction operated by buying and selling simultaneously in two separate markets, as Chicago and New York, when there is an abnormal difference in price between the two markets. It is called a back spreadwhen the difference in price is less than the normal one.

Surface in proportion to the depth of a cut stone.

Process or result of distributing or extending over a wide expanse of space

A conspicuous disparity or difference as between two figures;

Farm consisting of a large tract of land along with facilities needed to raise livestock (especially cattle)

A haphazard distribution in all directions

A tasty mixture to be spread on bread or crackers

A meal that is well prepared and greatly enjoyed;

Two facing pages of a book or other publication

The expansion of a person's girth (especially at middle age);

Decorative cover for a bed

Act of extending over a wider scope or expanse of space or time

Distribute or disperse widely;

Become distributed or widespread;

Spread across or over;

Spread out or open from a closed or folded state;

Cause to become widely known;

Become widely known and passed on;

Strew or distribute over an area;

Move outward;

Cover by spreading something over;

Distribute over a surface in a layer;

Distributed or spread over a considerable extent;

Prepared or arranged for a meal; especially having food set out;

Fully extended in width;