Vertical Spread

What Does Vertical Spread Mean?
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 explains Vertical Spread
Profits are determined by the widening or narrowing of the difference between the option premiums on the two positions.

Related Terms

Bear Spread
Bull Call Spread
Bull Spread
Bull Vertical Spread
Expiration Date
Frontspread
Horizontal Spread
Option
Spread
Spread Option
More Related Terms

Related Links

Option Spreads: Vertical Spreads - Learn how an options spread can limit risk and what markets work best with available spread constructions.
Vertical Bull and Bear Credit Spreads - This trading strategy is an excellent limited-risk strategy that can be used with equity as well as commodity and futures options.
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FxPro.com - Trade Forex Like a Pro

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