Call Bull Spread
Components
Long one call option with a low strike price and short one call option with a higher strike price.
For example, in a call bull spread, the purchased option has a lower exercise price than the sold option. Also called Bull Vertical Spread.
The spread may both be debit spreads (call bull spread vs. put bear spread) or both credit spreads ( call bear spread vs. put bull spread). Break-Even Point--the stock price (or prices) at which a particular strategy neither makes nor loses money.
One spread is established using put options and the other is established using calls. The spreads may both be debit spreads (call bull spread vs. put bear spread), or both credit spreads (call bear spread vs. put bull spread).
One spread is implemented using put options and the other is implemented with calls. The spreads may both be debit spreads (call bull spread vs. put bear spread) or both credit spreads (call bear spread vs. put bull spread).
 See also: Strike Price, Option, Spread, Bull spread, Call
  
|
RSS
