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Finance Dictionary and Glossary of Investment Terms
Bull spread
Definition 1.
A spread strategy in which an investor buys an out-of-the-money put option, financing it by selling an out-of-the money call option on the same underlying security.
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Definition 2.
An option strategy in which maximum profit is attained if 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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Definition 3.
An option strategy designed to profit from a rise in a security's price, by buying a near-month futures contract and selling a deferred month futures contract.
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