Strike Price

What is the meaning of ‘Butterfly Spread Option’?

December 28, 2017

A Butterfly Spread Option is a neutral strategy with limited risk. Also known as a Butterfly Option Spread it involves a combination of bull and bear spreads. Four option contracts with same expiry date at three strike points are combined by the holder. It creates a perfect...

What is the meaning of Bull Spread?

December 18, 2017

Bull Spread refers to a strategy in options trading where profits are maximised if the price of the underlying security goes up. The Spread is created by both puts and calls at various strike prices. The option is purchased at a lower strike price and is sold...

What is the meaning of Bear Put Spread?

December 7, 2017

Bear Put Spread is an options strategy employed by traders to buy and sell Put options with same expiry date but different strike prices. The spread is attained when one buys put options at a particular strike price and sells an equal number of puts at a...