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Spread

The spread is the gap between bid and ask prices of a stock, option, or other security. This term is also used to generally describe a number of strategies that make use of different spreads between calls, puts and the underlying stock, e.g., Bull Spread with Calls, Bull Spread with Puts, Bear Spread with Puts, Bear Spread with Calls, Butterfly Spread, Calendar Spread, Ratio Call Spread.

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