Buy A Spread

外汇网2021-06-19 14:12:52 340

Option strategy that will be profitable if the underlying security rises in value moderately. A bull spad can be executed either by put or call options. If the bull spad is executed through a put option, it is called a bull put spad. If it is executed through a call option, it is called a bull call spad. Buying a spad is also known as a "bull spad"

Both bull call spads and bull put spads are common vertical spad options strategies. A bull call spad involves buying a call option with a lower exercise price and pmium than the option that will be sold. For example, if you buy a call option for stock XYZ at a strike price of $60 and a pmium of $200, you will get a bull spad if you sell a call on the same stock with a $70 strike price and a pmium of $100. With bull call spads, it is necessary that both call options have the same expiration date.

标签：