What is a Bull Spread?

Bull spread options are a type of packaged option. Packaged options are a portfolio of securities consisting of standard European options and forward contracts, cash and / or underlying assets.

Bull spread option

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Bull spread options are a type of packaged option. Packaged options are a portfolio of securities consisting of standard European options and forward contracts, cash and / or underlying assets.

Bull spread options are a type of packaged option. Packaged options are a portfolio of securities consisting of standard European options and forward contracts, cash and / or underlying assets. Bull spread options, also known as long spread options , are buying a call option with a low strike price and selling a call option with a high strike price. This makes rule one work.

When the investor expects the price of the target to rise, he can take the action of buying the right to make a profit. However, if the investor expects a limited increase in the subject, he can sell a call option with a higher performance price to earn a premium and reduce the overall operating cost. Therefore, the bull market spread is usually the strategy adopted by investors for conservative and bullish expectations of the target.