An option strategy that delivers its maximum profit when the underlying stock declines and has its maximum risk if the stock rises in price. The strategy can be implemented with either puts or calls. In either case, an option with a higher striking price is purchased and one with a lower striking price is sold, both options generally having the same expiration date. See also Bull Spread.
You might be interested in …
How to Make Money Trading Binary Options
Binary options are the latest and the most profitable financial instrument in the market today. Trading binary options is quick, easy, and best of all – profitable! What are binary options? It may sound complicated, […]
A
Accrued Interest Interest earned between the most recent interest payment and the present date but not yet paid to the lender. Accredited investor Refers to a person whose net worth, or joint net worth with […]
E
European style options An option contract that can only be exercised upon its expiration date. Compare to American-style options. Excess equity The value of cash or securities held in a margin account that exceeds the […]
Latest Posts
