a ghetto spread

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polyglotwannabe

Senior Member
Spanish
Hi, does anyone kinows how to translate into spanish the phrase in the thead


In options trading, a ghetto spread is when you buy a call or put, let it increase in value for a while, then sell a further OTM call/put for a price higher than what you paid for your original contract, making the debit spread free.
I paid $300 for five AAPL $320 calls, waited two days, then sold-to-open five of the $325 calls for $500, flipping it into a "ghetto spread" and pocketing $200 in profit. Max profit = $2700, Max risk = $0


Un diferencial de guetto un margen de guetto
No suena bien, pero se que hay ayuda bien autorizada en camino.

Thanks,
poly
 
  • Chez

    Senior Member
    English English
    I have no idea what a 'ghetto spread' is and have never heard of it before, but it is defined in the text you quote (so now I have some idea). It is a specialist and unusual term. I don't see how you can 'translate' it other than using the English term in quote marks; or using a literal translation, also in quote marks – and then carrying on to define the term.
     

    Joe Esquire

    Senior Member
    Spanish Spain- English US
    Hi, does anyone kinows how to translate into spanish the phrase in the thead


    In options trading, a ghetto spread is when you buy a call or put, let it increase in value for a while, then sell a further OTM call/put for a price higher than what you paid for your original contract, making the debit spread free.
    I paid $300 for five AAPL $320 calls, waited two days, then sold-to-open five of the $325 calls for $500, flipping it into a "ghetto spread" and pocketing $200 in profit. Max profit = $2700, Max risk = $0


    Un diferencial de guetto un margen de guetto
    No suena bien, pero se que hay ayuda bien autorizada en camino.

    Thanks,
    poly
    I advise caution, it is not generally recognized or acceptable as a financial term, some Youtuber came up with it. It has an improper connotation.
     

    Joe Esquire

    Senior Member
    Spanish Spain- English US
    The correct financial terminology is “Legging an Options Spread”, which refers to “putting“ on different parts of an option spread as individual transactions. For example, a Vertical Spread, with a long put at one strike and a short put at another.

    Now in Spanish, I have heard the term : Opciones put/call verticales.
    Hope it helps.
     
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