Vertical Spread

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Dictionary Says

Definition of 'Vertical Spread'

An options trading strategy with which a trader makes a simultaneous purchase and sale of two options of the same type that have the same expiration dates but different strike prices.
Investopedia Says

Investopedia explains 'Vertical Spread'

Profits are determined by the widening or narrowing of the difference between the option premiums on the two positions.

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