Definition
A vertical spread involves buying and selling options of the same type and expiration but with different strike prices. The name comes from options being displayed vertically by strike on trading screens. Verticals can be bullish, bearish, credit, or debit depending on configuration.
Example
A bull call spread buying the $100 call and selling the $105 call is a vertical spread with $5 width.
FAQ
What is Vertical Spread?
An options spread using same expiration but different strike prices.
Why is Vertical Spread important?
Vertical Spread helps investors evaluate options and make more informed decisions.