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Option Spread

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Description

A strategy involving multiple options of the same class on the same underlying security but with different strike prices or expiration dates.

An option spread involves buying and selling multiple options contracts on the same underlying security but with different strike prices, expiration dates, or both. This strategy aims to reduce risk compared to outright options trading, capitalizing on the price difference between the options, and can be used for various market expectations like bullish, bearish, or neutral.

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