put spread(redirected from Put spreads)
An option spread in which one has a long position in a put while having a short position on another put on the same underlying asset with a different strike price and/or expiration date. One uses a put spread to profit from price movements in the underlying asset. See also: call spread.
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An option position in which a put option is purchased while another put option on the same security is sold short. The two puts have different strike prices, different expiration dates, or both. Also called option spread. Compare call spread.
Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.