Bull spread: Difference between revisions

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A bull spread can be constructed using call options by buying a call with a given strike price, and selling an otherwise identical call with a higher strike price. It can also be constructed using appropriate put options.
A bull spread can be constructed using call options by buying a call with a given strike price, and selling an otherwise identical call with a higher strike price. It can also be constructed using appropriate put options.
Sometimes known as a 'risk reversal'.




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* [[Bull]]
* [[Bull]]
* [[Call option]]
* [[Call option]]
* [[Speculation]]
[[Category:Financial_products_and_markets]]

Latest revision as of 16:36, 27 June 2022

Options speculation.

A composite speculative deal in two options, which results in a profit/loss profile similar to a conventional call option, except that the upside potential is capped in return for a reduction in the net premium payable.

A bull spread can be constructed using call options by buying a call with a given strike price, and selling an otherwise identical call with a higher strike price. It can also be constructed using appropriate put options.


Sometimes known as a 'risk reversal'.


See also