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  2. Options strategy - Wikipedia

    en.wikipedia.org/wiki/Options_strategy

    Mildly bullish trading strategies are options that make money as long as the underlying asset price does not decrease to the strike price by the option's expiration date. These strategies may provide downside protection as well. Writing out-of-the-money covered calls is a good example of such a strategy. The purchaser of the covered call is ...

  3. Credit spread (options) - Wikipedia

    en.wikipedia.org/wiki/Credit_spread_(options)

    Finance. In finance, a credit spread, or net credit spread is an options strategy that involves a purchase of one option and a sale of another option in the same class and expiration but different strike prices. It is designed to make a profit when the spreads between the two options narrows . Investors receive a net credit for entering the ...

  4. Butterfly (options) - Wikipedia

    en.wikipedia.org/wiki/Butterfly_(options)

    A long butterfly options strategy consists of the following options : Long 1 call with a strike price of (X − a) Short 2 calls with a strike price of X. Long 1 call with a strike price of (X + a) where X = the spot price (i.e. current market price of underlying) and a > 0. Using put–call parity a long butterfly can also be created as follows:

  5. Spread option - Wikipedia

    en.wikipedia.org/wiki/Spread_option

    Spread option. In finance, a spread option is a type of option where the payoff is based on the difference in price between two underlying assets. For example, the two assets could be crude oil and heating oil; trading such an option might be of interest to oil refineries, whose profits are a function of the difference between these two prices.

  6. Bull spread - Wikipedia

    en.wikipedia.org/wiki/Bull_spread

    Bull spread. In options trading, a bull spread is a bullish, vertical spread options strategy that is designed to profit from a moderate rise in the price of the underlying security. Because of put–call parity, a bull spread can be constructed using either put options or call options. If constructed using calls, it is a bull call spread ...

  7. Backspread - Wikipedia

    en.wikipedia.org/wiki/Backspread

    Call backspread. The call backspread (reverse call ratio spread) is a bullish strategy in options trading whereby the options trader writes a number of call options and buys more call options of the same underlying stock and expiration date but at a higher strike price. It is an unlimited profit, limited risk strategy that is used when the ...

  8. Spread trade - Wikipedia

    en.wikipedia.org/wiki/Spread_trade

    Spread trade. In finance, a spread trade (also known as relative value trade) is the simultaneous purchase of one security and sale of a related security, called legs, as a unit. Spread trades are usually executed with options or futures contracts as the legs, but other securities are sometimes used. They are executed to yield an overall net ...

  9. Intermarket spread - Wikipedia

    en.wikipedia.org/wiki/Intermarket_Spread

    In finance, an Intermarket Spread is collateral sale of a futures contract on one exchange and the simultaneous purchase of another futures contract on another exchange within any given month. As with any other spread trade , an intermarket spread attempts to profit from the widening or narrowing of the gap between the two contract prices.