Option Strategy

Box Spread - Option Strategy

Box Spread is a risk-neutral strategy which may be formed by combining a bull spread created with Call options with a bear spread created with Put options or vice versa.

A Box spread always has a riskless payoff and may yield returns in cases of inefficiencies in the pricing of the option contracts.

A Box spread is so named as all four contracts at the corner of some rectangular area in a standard options quotation list are used to form it.

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