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In options trading, a bull spread is a bullish, vertical spread options strategy that is designed to profit from a moderate rise in the price of the underlying security. Because of put–call parity , a bull spread can be constructed using either put options or call options .
Many options strategies are built around spreads and combinations of spreads. For example, a bull put spread is basically a bull spread that is also a credit spread while the iron butterfly can be broken down into a combination of a bull put spread and a bear call spread.
The Bull Put Credit Spread (see bull spread) is a bullish strategy and consists of selling a put option and purchasing a put option for the same stock or index at differing strike prices for the same expiration. The purchased put option is entered at a strike price lower than the strike price of the sold put option.
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 ...
A long put ladder is also called a bear put ladder. [8] 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 ...
The bull call spread and the bull put spread are common examples of ... For example, one uses a credit spread as a conservative strategy designed to earn modest ...
Vertical spreads can sometimes approximate binary options, and can be produced using vanilla options. Bull vertical spread - Bull call spread and bull put spread are bullish vertical spreads constructed using calls and puts respectively.
The first spread Andrews comes to for an NFL game is simple math, using the power ratings: If Team A is 90, Team B is 91 and at home with a 2.5-point home-field advantage, the line is Team B -3.5.