vertical spread


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Vertical spread

Simultaneous purchase and sale of two options that differ only in their exercise price. See: Horizontal spread.

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.

vertical spread

References in periodicals archive ?
A report by the Tyne and Wear Fire Service revealed a the building did not have easily accessible fire exits or sufficient escape routes and there were a number of construction defects - such as holes in the flooring, walls and ceiling - which could "potentially allow for rapid vertical spread of fire.
Butkus--Modelling of the artificial radionuclides 1S7Cs vertical spread in soil and in the system soil-pinewood; E.
This is rendered more difficult in regions where vertical spread has more effect than horizontal, and where the choice of plant has often been made based on productivity arguments rather than on a quest for a product of quality.
The cable's flame retardant jacket provides excellent protection from environmental hazards and meets NEC Riser Rating OFNR (UL 1666) standard for reducing the vertical spread of fire.
Considering twice as many calls were sold than bought, it appears we've unraveled a ratio vertical spread on BIIB.
This was indicated as a vertical spread trade alongside the September 12.
Digging deeper into the data, it appears that at least one investor is anticipating a moderate move higher by initiating a ratio vertical spread with calls.
Custom Spreads (up to four legs) < Butterflies Covered Calls < Condors Protective Puts < Iron Condors Verticals < Iron Butterflies Straddles < Backspreads Strangles < Combinations Calendars < Synthetic Stock Diagonals < Vertical Spread Spreads
The unit employs 64 lasers, each fixed at a specific height across a 26-degree vertical spread.
Features include the ability to view and monitor virtual order status and quotes, and to generate option chains for more complex strategies such as covered calls, vertical spreads, calendar spreads, straddles and strangles.
Learn the benefits of vertical spreads, straddles, strangles and some spreads involving both stocks and options.
Learn the benefits of vertical spreads, straddles, strangles, and some spreads involving both stocks and options.