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 ?
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%.
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.
Each Bid Shall Be Accompanied By And Based On The Bidder%s Artesia Refinery Price List As Of July 1, 2016 And The Spread Between The Artesia Refiner%s Current List Price Per Gallon And The Bid Price Per Gallon Will Be The Price Which The Bidder Must Maintain Over The Cost Fob The Refiner%s Distribution Point: Price Spread Must Be Held Firm Through June 30, 2017.
The price spread between Brent futures contracts for deliveries in June and July 2016 has even flirted with backwardation this week.
The price spread between US crude futures, or West Texas Intermediate (WTI) delivered at Cushing, and London-traded Brent crude futures, narrowed to less than $17 a barrel for the first time since September.
The price spread between Western Canada Select (WCS) and Mexican Maya - two heavy/sour crude oils with similar specific gravities and sulphur content - has ballooned to more than $20/b.
As the price spread between oil and natural gas reached an all-time high, the price differential between compressed natural gas (CNG) and diesel yawned to $1.
The fact that the price spread between nearby and deferred soy values widens the farther out you go on the delivery calendar ensures consumers get a clear message that there is an incentive to delay purchases of soybeans by as long as possible.
Each iPad will be furnished with a suite of learning apps at an estimated cost of EUR700 for the full package, but with the price spread across a three-year period, school principal Jimmy Finn insisted it is value for money.
CUs opting for shorter duration with same price spread may lose out.