Bull Vertical Spread


DEFINITION of 'Bull Vertical Spread'

An bullish strategy used by investors who feel that the market price of a commodity will appreciate but wish to limit the downside potential associated with an incorrect prediction.

BREAKING DOWN 'Bull Vertical Spread'

A bull vertical spread requires the simultaneous purchase and sale of options with different strike prices, but of the same class and expiration date.

  1. Bear

    An investor who believes that a particular security or market ...
  2. Bear Spread

    1. An option strategy seeking maximum profit when the price of ...
  3. Commodity

    1. A basic good used in commerce that is interchangeable with ...
  4. Bull

    An investor who thinks the market, a specific security or an ...
  5. Vertical Spread

    An options trading strategy with which a trader makes a simultaneous ...
  6. Expiration Date (Derivatives)

    The last day that an options or futures contract is valid. When ...
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  3. How does a forward contract differ from a call option?

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  4. How can an investor profit from a fall in the utilities sector?

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