vertical spread


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Vertical spread

Simultaneous purchase and sale of two options that differ only in their exercise price. See: Horizontal spread.

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.

vertical spread

References in periodicals archive ?
He said that the overall strategic goal of teaching Chinese was to make it the third language parallel to English and with the same level of horizontal and vertical spread in the two education systems.
Vertical spread of flower made significantly strong positive correlation with flower weight (r=0.762) and horizontal spread of flower (r =0.895).
This vertical spread can be attributed to the barrels' over/under design.
Butkus--Modelling of the artificial radionuclides 1S7Cs vertical spread in soil and in the system soil-pinewood; E.
This is rendered more difficult in regions where vertical spread has more effect than horizontal, and where the choice of plant has often been made based on productivity arguments rather than on a quest for a product of quality.
The vertical spread probably rolls a block of 5K Jun 16 calls opened for $3.20 with shares $15.60 on 11/30/18.
A report by the Tyne and Wear Fire Service revealed a the building did not have easily accessible fire exits or sufficient escape routes and there were a number of construction defects - such as holes in the flooring, walls and ceiling - which could "potentially allow for rapid vertical spread of fire.
Meanwhile, the largest trades in the name are two legs of a vertical spread: 4.5K Apr 15 - 24 put spreads bought for $4.18 (possibly rolling long puts up nine strikes) and expresses concerns that shares could suffer a setback over the next few months.
$9.1M long-dated upside vertical spread rolls position to higher delta.
A three-way spread noted earlier (72.7K Sep 45.5 calls sold at 24c while 72.7K Dec 46 - 47.5 call spreads bought for 44c) has now traded 118K and appears to be rolling long Sep 45.5 calls to a new bullish vertical spread in the December term.
The vertical spread probably rolls a matching block of short Aug 60 calls opened at $3.20 on 7/19 with shares near $61.
Today's move is nearly double that implied by the straddle and the vertical spread appears to monetize a 250K gain, while maintaining a long put at the 12.5 strike, already 2.50 in the money.