price spread

Price spread

An options strategy that involves buying and selling two options on the same security with the same expiration month, but with different exercise prices.

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.

price spread

References in periodicals archive ?
Some traders expect this price spread to remain tight in 2019.
With a stricter International Maritime Organisation emissions regulation (IMO 2020) coming into force in 2020, the new sulphur cap for compliant fuel oil will be lowered to 0.5 percent from 3.5 percent - involving a $250 per tonne price spread at current rates charged by refiners for the product.
Betting on the price spread, a popular trade in oil markets, is based on predictions of price differences between European and U.S.
This large price spread between South Korea [and other regions] has never been seen before.
The repurchases will be made on one or several occasions but no later than the Annual General Meeting 2018 and at a price per share within the price spread registered from time to time.
The minimum price spread from manufacturer to pharmacy is 20%.
A higher-than-usual price spread drove some to use more expensive transportation modes such as rail (Cakir Melek and Wilkerson).
This was revealed in the October edition of the Market Bulletin - a monthly report produced by Hybu Cig Cymru - Meat Promotion Wales (HCC) to summarise sheep, cattle and pig trading patterns and prices - which focused on the farm to retail price spread for beef and lamb.
After analyzing the dispatch patterns, we move on to evaluating the fuel choices as the fuel price spread and demand change.
The PUC also "strongly cautioned" Eversource about its ongoing duty to present all relevant information to the commission, admonishing the company for failing to disclose in a 2008 filing the necessary price spread between natural gas and coal costs--the "economic" price for the scrubber.
Motorists queued at the Harvest Energy filling station in Kings Heath yesterday as news of the tumbling price spread.
Company share price variance (%) in 2014 and performance compared with their stock market Company Highest Lowest Price Spread Change Compared Share Share or Variance with their Market Price Price API 77 42 83.3% -31% De La Rue 892 467.5 91.2% -32.4% K Laser 20.65 14.2 45.4% -16.7% Nano Tech 1.96 1.15 70.4% -33.2% Opsec 41.8 30 39.3% -18% Shiner 60 10 500% -11% SVG 44.5 22 102.3% 0%