strike spread

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Strike Spread

In options, an investment strategy involving the sale of one option and the purchase of another option identical to the first in every way except the strike price. For example, an investor may write a call giving the buyer the right to buy 1,000 barrels of oil with a strike price of $50 per barrel, and, at the same time, buy a call giving himself/herself the right to buy the same amount of oil at $40 per barrel. In the event that both options are exercised, the investor profits on the difference in the strikes. A strike spread is also called a money spread, a vertical spread, or a price spread.

strike spread

References in periodicals archive ?
The strength of sterling against the dollar means travellers may well find that their gambling money spreads further and the quality of the resorts in Vegas are also truly stunning.
Racing Post Weekender and Brightwells Insurance are putting an extra pounds 720 (divided among the first three horses) into six key events, but the money spreads to all regions and less well-known contests.
The trouble is, this devil-may-care attitude to other people's money spreads right to the top of British society.