strike spread

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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.
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strike 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.
References in classic literature ?
This phase of the strike spread up and down the entire Pacific coast, until all the ports were filled with idle ships, and sea transportation was at a standstill.
The post Children's climate strike spreads worldwide appeared first on Cyprus Mail .
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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