Ads
related to: bull put spread profit calculator- Our Platform
Downloadable, Web Based, & Mobile
Platforms for Active Traders.
- Brokerage Account Types
tastyworks has Margin, Cash, IRA,
Joint and Corporate accounts.
- Our Platform
theotrade.com has been visited by 10K+ users in the past month
webull.com has been visited by 100K+ users in the past month
Search results
Results From The WOW.Com Content Network
The Bull Put Credit Spread (see bull spread) is a bullish strategy and consists of selling a put option and purchasing a put option for the same stock or index at differing strike prices for the same expiration. The purchased put option is entered at a strike price lower than the strike price of the sold put option.
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 .
While maximum profit is capped for some of these strategies, they usually cost less to employ for a given nominal amount of exposure. There are options that have unlimited potential to the up or down side with limited risk if done correctly. The bull call spread and the bull put spread are common examples of moderately bullish strategies.
It is designed to make a profit when the spreads between the two options narrows. Investors receive a net credit for entering the position, and want the spreads to narrow or expire for profit. In contrast, an investor would have to pay to enter a debit spread .
In finance, a debit spread, a.k.a. net debit spread, results when an investor simultaneously buys an option with a higher premium and sells an option with a lower premium. The investor is said to be a net buyer and expects the premiums of the two options (the options spread ) to widen.
Vertical spreads can sometimes approximate binary options, and can be produced using vanilla options. Bull vertical spread - Bull call spread and bull put spread are bullish vertical spreads constructed using calls and puts respectively.
Ads
related to: bull put spread profit calculatortheotrade.com has been visited by 10K+ users in the past month
webull.com has been visited by 100K+ users in the past month