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.


A bull vertical spread requires the simultaneous purchase and sale of options with different strike prices, but of the same class and expiration date.



Vertical Bull and Bear Credit Spreads - This trading strategy is an excellent limited-risk strategy that can be used with equity as well as commodity and futures options.
Related Terms

Bear

Bear Spread

Bull

Commodity

Expiration Date

Spread

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