The Law Dictionary

Featuring Black’s Law Dictionary Free Online Legal Dictionary 2nd Ed.


An OPTION position created by buying and selling CALL OPTIONS with the same expiry date but different STRIKE PRICES (i.e., the purchaser of a call spread buys a closertothemoney call option and sells a farther outofthemoney call option (a bullish strategy), the seller of a call spread does the reverse (a bearish strategy)). The spread limits the gain or LIABILITY to an area defined by the two strikes. See also BULL SPREAD, BEAR SPREAD, PUT SPREAD.

Share on facebook
Share on twitter


Nothing implied or stated on this page should be construed to be legal, tax, or professional advice. The Law Dictionary is not a law firm and this page should not be interpreted as creating an attorney-client or legal adviser relationship. For questions regarding your specific situation, please consult a qualified attorney.