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Bear put spread |
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Bear put spreadThe purchase of a put with a high strike price against the sale of a put with a lower strike price in expectation of declining prices. The maximum profit is calculated: (high strike price - low strike price) - net premium received where net premium received = premiums paid - premiums received.Similar MatchesTED spreadTED spreadDifference between US Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality. Spread optionSpread optionA 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. Intercommodity 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. Time spread strategyTime spread strategyBuying and selling puts and calls with the same exercise price but different expiration dates, and trying to profit from the different premiums of the options. Generic credit spreadGeneric credit spreadRefers to the corporate bond spread for a particular credit rating and expiry. For example, 10-year single A corporates were priced or trading at 130 basis points above Treasuries last night, or said diffrently, 130 is the generic credit spread for 10-year single A corporates. Further SuggestionsVertical spreadSpread order Yield spread strategies Box spread Horizontal spread backspread Underwriting spread Credit spread spread betting bull spread spread Diagonal spread Spread strategy Ratio Spread Perpendicular spread Delta Spread condor spread Spread Bid asked spread Calendar spread ratio spread Intracommodity spread Mob spread Spread position bid/offer spread |
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