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Call Spread

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Call Spread
An option spread in which one has a long position in a call while having a short position on another call on the same underlying asset with a different strike price and/or expiration date. One uses a call spread to profit from price movements in the underlying asset. See also: Put spread.

call spread
An option position in which a call is purchased while another call on the same security is sold short. The two calls have different strike prices, different expiration dates, or both. Also called option spread. Compare put spread. See also spread.


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An investor sold 5,000 in-the-money July 44 calls and bought 10,000 July 50 calls in a one-by-two call spread – the customer collected $2.
After a call spread by Internet to rally at Haft-e Tir square in Tehran to pay tribute to Neda, police on Monday broke up a gathering of about 1,000 people there.
A number of option traders appeared to be bracing for higher volatility after a call spread was initiated late last week looking for the VIX to rise above 45 by July expiration.
 
 
 
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