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Bear call spread |
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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 MatchesIntercommodity spreadIntercommodity spreadIn the commodities market, a spread consisting of a long position and a short position in different but related commodities for example, speculating that the price relationship between the two commodities will change, e.g., platinum and gold. SpreadSpreadThe difference between the bid price and the offer price for shares and for units in a unit trust. Market makers make their profit from the spread. They buy shares at the lower bid price and sell at the higher offer one. Diagonal spreadDiagonal spreadAn options strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, two puts or two calls in the same stock. See: Calendar spread; vertical spread. Mob spreadMob spreadThe yield spread between a tax-free municipal bond and a Treasury bond with the same maturity. Price spreadPrice spreadAn options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices. Further SuggestionsPut ratio backspreadDebit spread Spread option Horizontal spread Spread strategy Spread position credit spread Ratio Calendar Spread Option spread bear spread bull spread Spreadsheet Yield spread strategies Bid/ask spread box spread backspread Calendar spread Vertical spread bear put spread Bid asked spread Credit spread crack spread Bull spread diagonal spread Yield spread |
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