What is a bull spread?

What is a bull spread?

If an option spread strategy is designed to be profitable when the price of the underlying security rises, it is known as a Bull Spread.


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    • What is options spread?

      An options spread is when the investor buys as well as sells options of the same underlying security but of different strike prices and/or different expiries.
    • What is a bear spread?

      If an option spread strategy is designed to be profitable when the price of the underlying security falls, it is known as a Bear Spread.
    • What is an options debit spread?

      A debit spread occurs when the investor buys options with a higher premium and sells options with a lower premium thereby resulting in a net premium outflow.
    • What is an options credit spread?

      A credit spread occurs when the investor buys options with a lower premium and sells options with a higher premium, thereby resulting in a net premium inflow.
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      While squaring off your hedge position you are required to close the Sell order first of the option before squaring off the Buy order. If you square-off the Buy order first, the margin required increases for your Sell order as it is now the naked ...