|
|
Bear put spread |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
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 MatchesBear call spreadBear 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. Diagonal spreadDiagonal spreadAn 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. Ratio spreadRatio spreadOption strategy using either puts or calls. The trader purchases a certain number of options and then sells a larger number of out of the money options. Condor spreadCondor spreadAn options strategy involving four strike prices that has both limited risk and limited profit potential. A long call condor spread is established by buying one call at the lowest strike, writing one call at the second strike, writing another call at the third strike, and buying one call at the fourth (highest) strike. Also referred to as a 'flat-top butterfly'. Underwriting spreadUnderwriting spreadThe income that is generated by the underwriting syndicate and the selling group, which is essentially the difference between the amount paid to the issuer of securities in a primary distribution and the public offering price. Further SuggestionsBid asked spreadRatio Calendar Spread Spreadsheet Diagonal spread spread put spread Mob spread box spread Credit spread Spread income Bull spread Dealers spread Butterfly spread Bid/ask spread spread betting bear spread crack spread Selling the spread call spread NOB spread debit spread Put ratio backspread Narrowing the spread Calendar spread Debit spread |
|
|
|