Options Spread

An options spread is a position that involves holding long and short equal number of options of the same class on the same underlying security but with different strike prices or expiration dates.

Options Spread

An options spread is a position that involves holding long and short equal number of options of the same class on the same underlying security but with different strike prices or expiration dates.

 


Application of Options Spread

The three main classes of spreads are the horizontal spread, the vertical spread and the diagonal spread. They are grouped by the relationships between the strike price and expiration dates of the options involved.



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