Advertising

Bull spread

• A spread strategy in which an investor buys an out-of-the-money put option, financing it by selling an out-of-the money call option on the same underlying.

• Is an option strategy which is structured to profit from price increases in the underlying market. These spreads can be done for credits or debits. They can be built with calls or puts. When these strategies are done one-for-one, then the purchase of the lower strike and the sale of the higher strike establish the bullish characteristic. Here, the common strategies are vertical, diagonal, and weighted spreads.

 
 

Follow this link for all the terms related to spread.

 
 Embedded terms in definition
 Bullish
Call option
Call
Investor
Market
Option
Profit
Purchase
Put option
Put
Sale
Spread strategy
Spread
Ted spread
Underlying
Weighted spread
 
 Related Terms
 

<< Bull market Bulldog bond >>

Getting Your Finances Ready for Your Golden Years: If you're seriously considering retirement, you also should be seriously thinking about how to ensure that your financial life is as comfortable and stress-free as possible. Here are a few tips. More...

When a true genius appears in the world you may know him by this sign: that all the dunces are in confederacy against him. - Johnathan Swift

Advertising



Copyright 2009-2018 GVC. All rights reserved.