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Spread |
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An
option strategy with maximum profit when the price of the underlying
security declines. The strategy involves the purchase and simultaneous
sale of options. Puts or calls can be used. A higher strike price
is purchased and a lower strike price is sold. The options should
have the same expiration date.
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You
make money if the stock goes down and loss occurs if the underlying
security rises in price. |
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Dictionary
