Buy a Spread
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Buy a Spread

An options position in which an investor buys an option at a given premium and writes another option with a lower premium and a different strike price. It is important to note that both options expire on the same day. An investor buys a spread to create a position in which he/she will make a profit whether or not the options are exercised. If the investor exercises the option he/she bought, it is because he/she expects to profit on the resale of the underlying asset. If the option with the lower premium is exercised, the investor profits on the sale of the underlying. See also: Exotic option, Spread.

buy a spread

In options trading, to establish a spread position in which the premium on the option purchased exceeds the premium on the option sold. A typical example would be to buy a call on Microsoft with a $60 strike price for a premium of $300 and to sell a Microsoft call with a $65 strike price for $125 (both expiring on the same date).

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No references found			It will be handy for ex-Spice Girl Geri Halliwell, who has reportedly bought a spread only 15 miles away. Manor for Evans; Chris pays out pounds 6million for dream home by Hughes, Chris; Freeman, Simon / The Mirror (London, England)			Borse Borsengehandelte option Borsenparkett Bosnia and Herzegovina Convertible Mark Boston Consulting Group Boston Equity Exchange Boston Exchange Automated Communication Order-Routing Network Boston Option Boston Options Exchange Boston Stock Exchange BOT Both to Blame Clause Bottle Hanger Bottleneck Bottom bottom feeder Bottom Fisher Bottom Fishing Bottom Line bottom-fishing Bottom-Up Equity Management Style Bottom-Up Investing bottomland Bottomline growth Bottomry Bought a Spread Bought Deal Bought Ledger Boulewarism Bounce Bounce Back Bounce Message Bounced Check Bound Bound Rate boundary Boundary Conditions boundary line disputes Bounded Rationality Bounty Bourse Bourse de commerce Bourse de Montreal, Inc. Boutique Boutique Agency BOV Bow-Tie Loan Bowie Bonds BOX Box Size Box Spread			bougainvillea bougainvillea Bougainvillea glabra Bougainvillea Golf and Country Club Bougainvilleas Bougainvilleas Bougainvillia Bougainvillia Bouganville Bouganville Bougas, Bulgaria Bougas, Bulgaria Bouge Bouget bough bough bough bough bough boughed boughed boughless Boughpot boughs boughs bought bought bought bought bought Bought a Spread Bought deal Bought Deals Bought goods online, never received Bought In Bought In Bought In bought it bought it bought it Bought Ledger Bought Ledgers Bought note Bought on Margin bought out bought out bought out Bought Out Part Bought the Book bought the farm bought the farm bought the farm Bought the Index Bought the Spread bought time bought time bought time Bought vehicle, became unemployed and it was reposessed boughten Boughton Hill Boughton Peterson Yang Anderson

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Buy a Spread (redirected from Bought a Spread)

Buy a Spread
(redirected from Bought a Spread)