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Strike Spread

   Also found in: Wikipedia 0.01 sec.
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


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9/3/2008 3:55:55 AM Thousands of anti-government protesters have continued to occupy the grounds of the Thai prime minister's office as the threat of a public sector strike spread 24 hours after a state of emergency was declared in the capital.
Strike spreads HUNDREDS more benefit office workers staged unofficial strikes yesterday following a fresh suspension of a manager for refusing to co-operate with a controversial new pay performance scheme.
1977: The bread strike spreads like butter on hot toast as a Liverpool bread factory boss is forced to halt production at Cubbon Brothers for the first time in 66 years.
 
 
 
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