price spread

Price spread

An options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices.

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.

price spread

References in periodicals archive ?
Over the past two years, they have taken measures (such as adjusting the price spread, reducing the number of stores, making a layout for E-commerce) to cope with the global economic downturn and China's diminished spending power.
Stephen James, NFU Cymru president said the retail price has shot up by more than 43p per kilo and the actual price spread between the price in the shops and the farm price is now a whopping PS1.
The price spread between US crude futures, or West Texas Intermediate (WTI) delivered at Cushing, and London-traded Brent crude futures, narrowed to less than $17 a barrel for the first time since September.
The price spread between Western Canada Select (WCS) and Mexican Maya - two heavy/sour crude oils with similar specific gravities and sulphur content - has ballooned to more than $20/b.
The fact that the price spread between nearby and deferred soy values widens the farther out you go on the delivery calendar ensures consumers get a clear message that there is an incentive to delay purchases of soybeans by as long as possible.
Each iPad will be furnished with a suite of learning apps at an estimated cost of EUR700 for the full package, but with the price spread across a three-year period, school principal Jimmy Finn insisted it is value for money.
CUs opting for shorter duration with same price spread may lose out.
The biggest price spread in the food items I compared was for cereal-the difference was over $1.
Biofuels Corporation announced yesterday that as a consequence of the tight price spread caused by lower mineral oil prices and the increased cost of vegetable oils and methanol, the company is currently experiencing tighter profit margins.
Not only were agricultural commodities subject to some fairly wide price swings due to supply and demand conditions in 2004, but higher energy prices added to transportation and processing in the farm-to-retail price spread.
However in some markets, the price spread between these levels increased and then moderated.
While the system greatly reduces the amount of wax on the cardboard, one of the biggest drivers for a company considering whether or not to pay the additional cost of using this system is the price spread between wax corrugated and conventional old corrugated.