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Bull spread

The financial definition for Bull spread:

A spread strategy in which an investor buys an out-of-the-money put option, financing it by selling an out-of-the money call option on the same underlying security.




Similar Matches

Alligator spread

Alligator spread
The term used to describe a spread in the options market that generates such a large commission that the client is unlikely to make a profit even if the markets move as the investor anticipated.


Bid asked spread

Bid asked spread
The difference between the bid and the asked prices.


Box spread

Box spread
A type of option arbitrage in which both a bull spread and a bear spread are established for a near-riskless position. One spread is established using put options and the other is established using calls. The spread may both be debit spreads (call bull spread vs. put bear spread) or both credit spreads (call bear spread vs. put bull spread). Break-Even Point--the stock price (or prices) at which a particular strategy neither makes nor loses money. It generally pertains to the result at the expiration date of the options involved in the strategy. A "dynamic" break-even point is one that changes as time passes.


Further Suggestions

Butterfly spread
Calendar spread
Credit spread
Dealers spread
Debit spread
Delta Spread
Diagonal spread


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