diagonal bull spread

diagonal bull spread definition - finance
An option-trading strategy that involves purchasing an options contract that expires later and has a lower strike price than an option that the investor sells simultaneously. The investor profits if the price increases. This spread can be constructed using either puts or calls.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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