Vertical Spread
Investment Dictionary:
Vertical Spread
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Bull Vertical Spread
An bullish strategy used by investors who feel that the market price of a commodity will appreciate but wish to limit the downside potential associated with an incorrect prediction.
Because vertical spreads have an intrinsic value, the term 'moneyness' applies to them. Moneyness refers to whether or not and by how much an option, or a vertical spread, may be in the money or out of the money.
Vertical spread
Simultaneous purchase and sale of two options that differ only in their exercise price. See:
horizontal spread.
Bull spread ...
VERTICAL SPREAD " See: price Spread.
VESTING " The process by which an employee becomes entitled to benefits in a retirement plan.
Bear Vertical Spread
A strategy employed when an investor expects a decline in a commodity price but at the same time seeks to limit the potential loss if this expectation is not realized.
Vertical Spread
Strategy where an investor concurrently buys and sells options on the same underlying security--also called a price spread. Both options have identical expiration dates but different strike prices.
Vertical Spread
An options trading strategy with which a trader makes a simultaneous purchase and sale of two options of the same type that have the same expiration dates but different strike prices.
* Vertical Spread: Concurrently buying and writing (selling) the same options class and the same expiration date, but with different exercise prices.
See: Calendar spread; vertical spread. Dialing and smiling See: Cold calling Dialing for dollars A term used to describe the practice of cold calling, ...
For example, a long May 60-65 call vertical spread is equival...(Read more)
ERNIE
An abbreviation for Electronic Random Number Indicator Equipment that selects the prizes in the premium bonds monthly draw. There have been...(Read more) ...
When one firm acquires another firm that is in the same industry but at another stage in the production cycle. For example, the firm being acquired serves as a supplier to the firm doing the acquiring.
Vertical spread ...
strategy requiring a long and a short position in the same class of option at different strike prices and different expiration dates. For example, buying an XYZ April 50 call and selling an XYZ July 55 call. See: Calendar spread; vertical spread.
Money spread: An options spread position in which the expiration months are the same, but the strike prices are different, also known as a vertical spread.
between the premium of the option purchased and the one sold (i.e. net credit). The maximum loss of a credit spread is the difference between the strike prices minus the net credit received. A credit spread is also called a vertical spread.
See also bear spread; bull spread; butterfly spread; calendar spread; credit spread; debit spread; diagonal spread; option; price spread; selling the spread; vertical spread.
Stocks and bonds: (1) difference between the bid and offer price.
vertical spread An option strategy involving the concurrent purchase and sale of options of... vested The quality of having the rights of ownership, although the exercise of these rights may be delayed until a future date.
 See also: Exercise price, Banks, Expense, Values, Net present value
  
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