Bear call spread
Bear call spreadThe purchase of a call with a high strike price against the sale of a call with a lower strike price.The maximum profit is the net premium received (premium received - premium paid), while the maximum loss is calculated by subtracting the net premium received from the difference between the high strike price and the low strike price (high strike price - low strike price net premium received). A bear call spread should be entered when lower prices are expected.
Ratio SpreadRatio Spread
Constructed with either puts or calls, the strategy consists of buying a certain amount of options and then selling a larger quantity of more out-of-the-money options.
NOB spreadNOB spread
Notes over bonds spread. This is the difference in yield between Treasury notes (maturing in 2 to 10 years) and Treasury bonds (maturing in 15 or more years), which is traded using Treasury note and bond futures.
Yield spread strategiesYield spread strategies
Investments that position a portfolio to capitalize on expected changes in yield spreads between sectors of the bond market.
Diagonal spreadDiagonal spread
An options strategy involving the simultaneous purchase and writing of two options of the same type that have different strike prices and different expiration dates. Example: buying 1 Dec 50 call and writing 1 Oct 55 call.
Spread optionSpread option
A position consisting of the purchase of one option and the sale of another option on the same underlying security with a different exercise price and/or expiration date.
Further SuggestionsYield spread
Intramarket sector spread
Generic credit spread
Intermarket sector spread
Put ratio backspread
Ratio Calendar Spread
Narrowing the spread
Relative yield spread