vertical spread

Buying and selling puts or calls of the same expiration month but different strike prices. Chicago Board of Trade glossary
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Simultaneous purchase and sale of two options that differ only in their exercise price. Bloomberg Financial Dictionary
See: horizontal spread. Bloomberg Financial Dictionary
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The purchase of a call ( put) and the sale of a call ( put), where the options have the same expiration but different strike prices. Chicago Mercantile Exchange Glossary
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An option spread where one option is purchased and another option is sold, both options being on the same underlying asset and having the same expiry but different strike prices. The spread will be constructed with either calls (See call option) or puts (See put option). Where the lower strike option is purchased and the higher strike option is sold, the spread is known as a bull spread. Where the lower strike option is sold and the higher strike option is purchased, the spread is called a bear spread. Dresdner Kleinwort Wasserstein financial glossary

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   An option strategy, using the simultaneous sale and purchase of two options of the same type and expiry date but with different strike prices.
   ► See also Option.

Financial and business terms. 2012.

Look at other dictionaries:

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