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Glossary of Option Terms: Bull Spread

Bull Spread

Definition: A strategy seeking greater earnings when the price of the underlying security rises in price. Either calls or puts can be used. The lower strike price is purchased and the higher strike price is sold. The options have the same expiration date.

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One Response to “Glossary of Option Terms: Bull Spread”

  1. SmartOptions » Blog Archive » A Powerful Investment Strategy In Today’s Market on June 13th, 2008 2:40 am

    [...] talking primarily about strategies like covered call options and bull spreads. But today, I want to focus on one strategy in particular that is excellent in a volatile market: [...]