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  • February 14, 2023
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Buy a Spread

An options trading strategy that is based on establishing a spread position in which the premium on the long option exceeds the premium on the short option. For instance, an investor may buy a call on company XYZ with a $50 strike price for a premium of $250 and sell a call on the same stock with a $55 strike price for $200.

Typically both options should have the same expiration date and underlying asset.

Buy a spread is the opposite of sell a spread.


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