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 ?
Vertical spread of flower made significantly strong positive correlation with flower weight (r=0.
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.
Considering twice as many calls were sold than bought, it appears we've unraveled a ratio vertical spread on BIIB.
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.
These include the covered call, the naked and the married puts, collars, straddles, vertical spreads, calendar spreads, butterflies, condors, and more.
While option volume is still prevalent, with the more than 104,000 contracts crossing the tape outpacing the stock's daily average volume by nearly nine to one, quite a bit of the session's call volume appears centered on vertical spreads instead of outright buying.
3 and 4 legged options trading - Allows traders to execute almost any options strategy - from the most conservative to the most sophisticated - including covered calls, vertical spreads, condors, butterflies and more, all through a single click.