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. Spread

    1. The difference between the bid and the ask price of a security ...
  2. Bear Spread

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

    An investor who believes that a particular security or market ...
  4. Expiration Date (Derivatives)

    The last day that an options or futures contract is valid. When ...
  5. Vertical Spread

    An options trading strategy with which a trader makes a simultaneous ...
  6. Bull

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