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Bull spread

A bull spread is an option strategy designed to make money if the underlying stock rises in price.

Expanded Definition

Typically a bull spread is constructed by either 1) simultaneously shorting a call with a higher strike price and buying a call with a lower strike price or 2) simultaneously shorting a put with a higher strike price and a buying a put with a lower strike price. Both of these examples would also use options with the same expiration date. If different expiration dates are used, that is a diagonal bull spread or a calendar bull spread.

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