|
|
Bull spread |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Bull spreadA spread strategy in which an investor buys an out-of-the-money put option, financing it by selling an out-of-the money call option on the same underlying security.Bull 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.Similar MatchesBox spreadBox spreadA type of option arbitrage in which both a bull spread and a bear spread are established for a near-riskless position. One spread is established using put options and the other is established using calls. The spread may both be debit spreads (call bull spread vs. put bear spread) or both credit spreads (call bear spread vs. put bull spread). Break-Even Point--the stock price (or prices) at which a particular strategy neither makes nor loses money. It generally pertains to the result at the expiration date of the options involved in the strategy. A "dynamic" break-even point is one that changes as time passes. Credit spreadCredit spreadA spread strategy that increases the account's cash balance when it is established. A bull spread with puts and a bear spread with calls are examples of credit spreads. 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. Yield spreadYield spreadThe difference in yield between different security issues usually securities of different credit quality. TED spreadTED spreadDifference between US Treasury bill rate and Eurodollar rate; used by some traders as a measure of investor/trader anxiety or credit quality. Further SuggestionsSpreadGeneric credit spread Maturity spread Spread position Credit spread Debit spread Mob spread Ratio Calendar Spread Diagonal spread Perpendicular spread Intercommodity spread Relative yield spread box spread spread ratio spread Bid asked spread Option spread Delta Spread diagonal spread Narrowing the spread Spread order Put ratio backspread bid offer spread Spread strategy Intracommodity spread |
|
|
|