Buy A Spread

Dictionary Says

Definition of 'Buy A Spread'

Option strategy that will be profitable if the underlying security rises in value moderately. A bull spread can be executed either by put or call options. If the bull spread is executed through a put option, it is called a bull put spread. If it is executed through a call option, it is called a bull call spread. Buying a spread is also known as a "bull spread"
 






Investopedia Says

Investopedia explains 'Buy A Spread'

Both bull call spreads and bull put spreads are common vertical spread options strategies. A bull call spread involves buying a call option with a lower exercise price and premium than the option that will be sold. For example, if you buy a call option for stock XYZ at a strike price of $60 and a premium of $200, you will get a bull spread if you sell a call on the same stock with a $70 strike price and a premium of $100. With bull call spreads, it is necessary that both call options have the same expiration date.





Search results for

'Buy A Spread'

  • Pass On Wealth To Spread Holiday Cheer

    http://www.investopedia.com/articles/pf/07/holiday-cheer.asp
    Pass On Wealth To Spread Holiday Cheer. ... (For related reading, see Holiday Gifts For
    Financial Geeks.) A few online sites let you buy one share of stock and send ...
  • Options Trading: How Implied Volatility Affects Calendar Spread

    http://www.investopedia.com/articles/optioninvestor/10/implied-volatility-calendar-spread.asp
    ... profit in ways not available to those who only buy or sell short the underlying
    security. One such strategy is known as the "calendar spread", sometimes also ...
  • The Basics Of The Bid-Ask Spread

    http://www.investopedia.com/articles/trading/121701.asp
    ... Limit Order - An individual places a limit order to sell or buy a certain amount
    of stock at a given price or better. Using the above spread example, an ...
  • Advanced Option Trading: The Modified Butterfly Spread

    http://www.investopedia.com/articles/optioninvestor/10/modified-butterfly-spread.asp
    ... butterfly spread. The basic butterfly can be entered using calls or puts in a ratio
    of 1 by 2 by 1. This means that if a trader is using calls, he will buy one ...
  • Profiting From Stock Declines: Bear Put Spread Vs. Long Put

    http://www.investopedia.com/articles/optioninvestor/09/bear-put-spread-long-put.asp
    ... Trader B might enter the more conservative - albeit more expensive - play and buy
    the 55 ... And why might a trader consider a bear put spread to be preferable? ...
  • Adjusting A Long Call Into A Butterfly Spread

    http://www.investopedia.com/articles/optioninvestor/10/adjusting-long-call-butterfly-spread.asp
    ... before a trader can adjust a long-call position into a butterfly spread, he must ...
    the 250-day moving average; The Elliott Wave count is suggested a Wave 4 buy; ...
  • How is spread calculated when trading in the forex market?

    http://www.investopedia.com/ask/answers/06/forexpercentagespread.asp
    ... are quoted in the marketplace, let's look at how we can calculate their spread. ...
    represents the price at which the forex market maker is willing to buy the base ...
  • Option Spreads: Selling And Buying To Form A Spread | Investopedia

    http://www.investopedia.com/university/optionspreadstrategies/optionspreads1.asp
    ... You might be wondering how you can profit from a spread if you buy and sell a call
    (or put) that both gains and loses with not just wrong-way moves or no ...
  • Pencil In Profits In Any Market With A Calendar Spread

    http://www.investopedia.com/articles/optioninvestor/08/calendar-spread-options-strategy.asp
    ... vehicle. If you are bullish, you would buy a calendar call spread. If you
    are bearish, you would buy a calendar put spread. A long ...
  • Series 7 Study Guide - Derivatives - Spread Option Strategies ...

    http://www.investopedia.com/exam-guide/series-7/derivatives/option-spread-strategy.asp
    ... These are the two steps to follow: Buy an out-of-the-money call ... You can create a
    bear spread just as well by selling an out-of-the-money put and buying an in-the ...

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