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Published On: Mon, Apr 8th, 2013

Bull Call Spread

This is an options strategy used when investors expect a moderate rise in the price of the underlying asset and is most often a vertical spread.

Investors purchase call options at a certain strike price while also selling the equivalent number of calls of the same asset and expiration date but at a higher strike price. Investors hope to profit with this strategy by the difference between strike prices of the long and short options, less the net cost of options.

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About the Author

- Marcus Holland has been trading the financial markets since 2007 with a particular focus on soft commodities. He graduated in 2004 from the University of Plymouth with a BA (Hons) in Business and Finance.

 

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