Kjøpsspreader

Kjøpsspreader, often referred to as a "buy spread" in English, is an options trading strategy. It involves simultaneously buying and selling options of the same class (either calls or puts) on the same underlying asset with the same expiration date. The key distinction is that the options have different strike prices.

There are two main types of kjøpsspreader: the bull call spread and the bear put spread. A bull call spread is established by buying a call option with a lower strike price and selling a call option with a higher strike price. This strategy profits when the price of the underlying asset rises moderately. The maximum profit is limited to the difference between the strike prices minus the net premium paid. The maximum loss is limited to the net premium paid.

Conversely, a bear put spread involves buying a put option with a higher strike price and selling a put option with a lower strike price. This strategy is designed to profit from a moderate decline in the underlying asset's price. Similar to the bull call spread, both the potential profit and loss are capped.

Kjøpsspreader strategies are typically used by traders who have a directional view on an asset but want to limit their risk or reduce the cost of entering a directional trade. They offer a way to participate in potential price movements while defining the maximum potential gain and loss upfront. The net cost to enter the spread is the difference between the premium paid for the bought option and the premium received for the sold option.