Spread: A spread position is a position consisting of two parts, each of which alone would profit from opposite directional price moves. As an order, spread involves the simultaneous purchase and sale of one or more option contracts of the same type (call or put) on the same underlying security with different strike prices and/or expiration dates. Some of the common types of spreads include the Vertical Call Spread, Vertical Put Spread, Calendar Call Spread, and Calendar Put Spread. We will go over these in a different post.