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Price spread |
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Price spreadAn options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices.Price spread Similar MatchesIntermarket sector spreadIntermarket sector spreadThe spread between the interest rate offered in two sectors of the bond market for issues of the same maturity. BackspreadBackspreadA delta-neutral spread composed of more long options than short options on the same underlying instrument. This position generally profits from a large movement in either direction in the underlying instrument. Bear 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. Credit spreadCredit spreadApplies to derivative products. Difference in the value of two options, when the value of the one sold exceeds the value of the one bought. One sells a "credit spread." Antithesis of a debit spread Related: Quality spread. Put spreadPut spreadThe simultaneous purchase (sale) of a put at one exercise price and the sale (purchase) of a put at a lower exercise price. Further SuggestionsDelta Spreadspread Bid asked spread credit spread spread betting Bid/ask spread Dealers spread Put ratio backspread ratio spread Spreadsheet Relative yield spread Spread strategy Intramarket sector spread call spread Box spread Spread calendar spread bear spread Narrowing the spread Butterfly spread condor spread bear put spread Alligator spread Mob spread Gross spread |
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