Vertical Spread Law and Legal Definition
Vertical Spread is an options spread position in which the expiration months are the same, but the strike prices differ. In options trading, it is an investment strategy involving the combination of buying one option and selling another option identical to it except for the strike price. For example, purchasing a January call with a strike price of $30 and selling a January call with a strike price of $25 is a money spread. It is also called Price Spread, Strike Spread and Money spread.