|
|
Bear call spread |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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.Similar MatchesIntramarket sector spreadIntramarket sector spreadThe spread between two issues of the same maturity within a market sector. For instance, the difference in interest rates offered for five-year industrial corporate bonds and five-year utility corporate bonds. Intermarket sector spreadIntermarket sector spreadThe spread between the interest rate offered in two sectors of the bond market for issues of the same maturity. Bull spreadBull spreadA strategy in options trading in which an option is purchased at an exercise price below that of the underlying instrument and simultaneously an option is sold at an exercise price above that of the underlying instrument, both with reference to the same expiry month. This applies to both call options or put options. Bid asked spreadBid asked spreadThe difference between the bid and the asked prices. Perpendicular spreadPerpendicular spreadOption strategy involving the purchase of options with similar expiration dates and different exercise prices. Further Suggestionsbid offer spreadspread betting ratio spread spread Spread Credit spread Horizontal spread Yield spread diagonal spread Alligator spread debit spread put spread Spread income Butterfly spread Maturity spread Relative yield spread Calendar spread condor spread crack spread TED spread Spread order Debit spread Delta Spread bear put spread Spreadsheet |
|
|
|