In the Trade Finder, a vertical credit spread using calls only. This is a net credit transaction established by selling a call and buying another call at a higher strike price, on the same underlying, in the same expiration. It is a directional trade where the maximum loss = the difference between the strike prices less the credit received, and the maximum profit = the credit received. Requires margin.
An option strategy designed to benefit from falling prices by purchasing a call option with a high exercise price and selling one with a low exercise price.
A strategy in which a trader sells a lower strike call and buys a higher strike call to create a trade with limited profit and limited risk. A fall in the price of the underlying increases the value of the spread. Net credit transaction; Maximum loss = difference between the strike prices less credit; Maximum gain = credit; requires margin.
A spread option strategy in which the investor attempts to take advantage of falling asset prices by selling a call option with a low strike price and simultaneously buying a call with a high exercise price.
a credit spread created by purchasing a higher
a form of a credit spread where you are selling time and waiting for time to expire so that you can benefit from the time decay
A spread designed to exploit falling exchange rates by purchasing a call option with a high exercise price and selling one with a low exercise price.
The purchase of a call with a high strike price against the sale of a call with a lower strike price. The maximum profit receivable is the net premium received (premium received - premium paid), while the maximum loss is calculated by subtracting the net premium received from the difference between the high strike price and the low strike price (high strike price - low strike price net premium received). A bear call spread should be entered when lower prices are expected. It is a type of vertical spread.
The bear call spread is a limited profit, limited risk options trading strategy that can be used when the options trader is moderately bearish on the underlying security. It is entered by buying call options of a certain strike price and selling the same number of call options of lower strike price on the same underlying with the same expiration month.
