call spread

call spread UK US noun [C]
FINANCE a situation in which an investor enters into option agreements to buy and sell financial assets of one type, but with different prices or different dates on which they must be paid for or sold: »

A call spread is excellent for traders who are looking for a low-risk, limited-return strategy.


Financial and business terms. 2012.

Look at other dictionaries:

  • Bear call spread — In finance, a bear call spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. It is entered by buying call options of a certain strike price… …   Wikipedia

  • Bull Call Spread — An options strategy that involves purchasing call options at a specific strike price while also selling the same number of calls of the same asset and expiration date but at a higher strike. A bull call spread is used when a moderate rise in the… …   Investment dictionary

  • bear call spread — The purchase of a call with a high strike price against the sale of a call with a lower strike price. The maximum profit receivable is the net premium received (premium received premium paid), while the maximum loss is calculated by subtracting… …   Financial and business terms

  • Bear Call Spread — A type of options strategy used when a decline in the price of the underlying asset is expected. It is achieved by selling call options at a specific strike price while also buying the same number of calls, but at a higher strike price. The… …   Investment dictionary

  • bull call spread — The purchase of a call with a low strike price against the sale of a call with a higher strike price; prices are expected to rise. The maximum potential profit is calculated as follows: (high strike price low strike price) net premium cost, where …   Financial and business terms

  • butterfly call spread — One of the more well known option trading strategies. A complex option trading strategy using puts and calls with different maturity dates and different strike prices. An option strategy designed to profit from stable or decreasing volatility.… …   Financial and business terms

  • Call option — This article is about financial options. For call options in general, see Option (law). A call option, often simply labeled a call , is a financial contract between two parties, the buyer and the seller of this type of option.[1] The buyer of the …   Wikipedia

  • spread — n 1 a: the difference between any two prices for similar articles the spread between the list price and the market price of an article b: the difference between the highest and lowest prices of a product or security for a given period c: the… …   Law dictionary

  • Spread offense — “Spread offense” may also refer to the four corners offense developed by Dean Smith. The spread offense is an offensive American football scheme that is used at every level of the game including the NFL, CFL, NCAA, NAIA, and high schools across… …   Wikipedia

  • Call to Action — (CTA) is an organization that advocates for a variety of causes within the Roman Catholic Church. Call to Action s goals include women s ordination, an end to mandatory priestly celibacy, a change in the church s teaching on a variety of sexual… …   Wikipedia

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