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Sell a Spread


An options trading strategy that is based on establishing a spread position in which the premium on the short option exceeds the premium on the long option. For instance, an investor may sell an October call on company XYZ with a $50 strike price for a premium of $60 and sell a December call on the same stock with a $50 strike price for $45.

LSell a spread is the opposite of buy a spread.



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Derivatives have increasingly become very important tools in finance over the last three decades. Many different types of derivatives are now traded actively on ...
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