Chapter 06 · Section 6.1

Horizontal Spread

Remember: A spread is created by purchasing or selling calls, puts or a combination of the two; The strike prices and expiration months are different.

Which options positions can be used to create a horizontal spread? Options with:

a) different expiration dates and different exercise prices.
• b) different expiration dates and the same exercise price.
  Yes. Using Calls or Puts the horizontal spread takes its name from the fact that the options used to create the spread are listed horizontally within an options price table. Continue
  c) same expiration date and different exercise prices.

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