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Bear spread |
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Bear spreadA strategy in options trading in which an option is purchased at an exercise price above that of the underlying instrument and simultaneously an option is sold at an exercise price below that of the underlying instrument, both with reference to the same expiry month. This applies to either call options or put options.Similar MatchesSpreadSpread(1) The gap between bid and ask prices of a stock or other security. (2) The simultaneous purchase and sale of separate futures or options contracts for the same commodity for delivery in different months. Also known as a straddle. (3) Difference between the price at which an underwriter buys an issue from a firm and the price at which the underwriter sells it to the public. (4) The price an issuer pays above a benchmark fixed-income yield to borrow money. Bid asked spreadBid asked spreadThe difference between the bid and the asked prices. SpreadSpreadThe difference between the price one must pay to buy something, such as a currency, and the price one receives for selling it. Bid/offer spreadBid/offer spreadThe difference between the selling price and the purchase price for investments.When you ask a broker what price the shares of a company are trading at in the market, he will quote two prices: the bid price is the price at which you can sell your shares, and the offer price is the price at which you can buy them. The first is always lower than the second, and the difference between them is the spread.Market makers, who act like wholesalers in the stock market, make their profit from the spread - buying shares at the bid price and selling them at the offer price Selling the spreadSelling the spreadA spread whose option to be sold is trading at a higher premium than the option to be bought. Further Suggestionsdiagonal spreadRelative yield spread Bull spread spread Yield spread strategies Butterfly spread Horizontal spread Spread strategy Spreadsheet Vertical spread Dealers spread Spread position Debit spread Ratio Calendar Spread Maturity spread Option spread put spread Time spread strategy bear call spread Delta Spread debit spread Intercommodity spread bull spread Spread option box spread |
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