Bull put spread
From Wikipedia, the free encyclopedia
The bull put spread is a limited profit, limited risk options strategy that can be used when the options trader is moderately bullish on the underlying security. It is entered by writing higher striking in-the-money put options and buying the same number of lower striking out-of-the-money put options on the same underlying security with the same expiration date.
The options trader employing this strategy hopes that the price of the underlying security goes up far enough such that the written put options expire worthless.
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[edit] Related
- Black-Scholes formula
- Covered call
- Moneyness
- Naked put
- Option
- Option time value
- Option style
- Put option
- Put-call parity
[edit] See also
- CBOE
- Derivative (finance)
- Derivatives markets
- Financial economics
- Financial instruments,Finance
- Futures contracts
- Option screeners
[edit] Options
- Binary option
- Bond option
- Credit default option
- Exotic interest rate option
- Foreign exchange option
- Interest rate cap and floor
- Options on futures
- Real option
- Stock option
- Swaption
- Warrant
[edit] References
- McMillan, Lawrence G. (2002). Options as a Strategic Investment, 4th ed., New York : New York Institute of Finance. ISBN 0-7352-0197-8.
