The bull call spread strategy is an extension of the long call strategy, which we had explained in our October 2009 issue (Take a Call).
Let us consider an example to understand the bull call spread strategy.
The call spread strategy
requires purchase of call option 1 and sale of call option 2, where [X.
Option Spread Trading provides a comprehensive, yet easy-to-understand explanation of option spreads, and shows you how to select the best spread strategy
for any given market outlook.
Digging deeper into today's unusual call volume, it appears we've discovered a September-dated spread strategy
centering on ADM.
Luminent's Spread strategy
invests primarily in US agency and other highly-rated single-family, adjustable-rate and hybrid adjustable-rate mortgage-backed securities and leverages these investments through repurchase agreements and commercial paper.
With both sets of seemingly paired trades appearing to be the initiation of long positions on CAT, I am at a bit of a loss as to what type of spread strategy
this could be.