An OPTION position created by buying and selling CALL OPTIONS with the same expiry date but different STRIKE PRICES (i.e., the purchaser of a call spread buys a closertothemoney call option and sells a farther outofthemoney call option (a bullish strategy), the seller of a call spread does the reverse (a bearish strategy)). The spread limits the gain or LIABILITY to an area defined by the two strikes. See also BULL SPREAD , BEAR SPREAD , PUT SPREAD.
Black’s Law Online Dictionary
