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Often the call with the lower exercise price will be at-the-money while the call with the higher exercise price is out-of-the-money. Both calls must have the same underlying security and expiration month. If the bull call spread is done so that both the sold and bought calls expire on the same day, it is a vertical debit call spread.
A box spread consists of a bull call spread and a bear put spread. The calls and puts have the same expiration date. The resulting portfolio is delta neutral. For example, a 40-50 January 2010 box consists of: Long a January 2010 40-strike call; Short a January 2010 50-strike call; Long a January 2010 50-strike put; Short a January 2010 40 ...
A bull call spread is an options strategy that sounds difficult but isn't so tough once you break it down. "Bull" comes from the fact that the position makes its maximum profit if the stock price ...
The iron butterfly is a special case of an iron condor (see above) where the strike price for the bull put credit spread and the bear call credit spread are the same. Ideally, the margin for the iron butterfly is the maximum of the bull put and bear call spreads, but some brokers require a cumulative margin for the bull put and the bear call.
A short put ladder is also called a bull put ladder. [9] A ladder can be seen as a modification of a bull spread or a bear spread with an additional option: for instance, a bear call ladder is equivalent to a bear call spread with an additional long call. A bull put ladder is equivalent to a bull put spread with an additional long put.
For premium support please call: 800-290-4726 more ways to reach us. Mail. Sign in. ... Fool contributor Anders Bylund owns shares of Netflix and has constructed a bull call spread on top of his ...
Motley Fool newsletter serviceshave recommended buying shares of AT&T, Microsoft, Google, and Apple, as well as creating a bull call spread position in Microsoft and Apple. Try any of our Foolish ...
The bull call spread and the bull put spread are common examples of moderately bullish strategies. Bearish strategies. Bearish options strategies are employed when ...
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