The 100/105 call spread
Definition · Level 2 · Long options & hedges
Keep reading with Tradecraft
Without an account, you can read three definitions every 30 days. Tradecraft explains all 738 terms and strategies, with the lessons that teach them, flashcards that come back before you forget, quizzes and a payoff lab.
Desk shorthand for a vertical made of the 100-strike and 105-strike calls, same expiry, traded as one package at a single net price; buying it means long the 100 call, short the 105.
Example
“I’ll pay 1.80 for the 100/105 call spread, fifty lots.”
Rules and market figures change: check the current ones before relying on this.
Where Tradecraft teaches it
Level 2 · Long options & hedges, in the lesson “Debit vertical spreads”: Buy one option, sell a cheaper one further out: a cheaper directional bet with capped profit.
Related terms
- Debit spreadA spread opened for a net payment: buy the more valuable option and sell a cheaper one further out of the money to cut the cost.
- Legging inEntering a multi-leg trade one option at a time instead of as a single package order, hoping for a better price but risking the market moving…
- Long Call SpreadBuy a call and sell a higher-strike call.
- Long Put SpreadBuy a put and sell a lower-strike put. Cheaper downside exposure, capped at the lower strike.
- Net debitThe amount you pay to open a position when the premium you buy exceeds the premium you sell; for long options and debit spreads it is also the…
- Short legThe option you sell inside a spread: it lowers the cost but caps your profit beyond its strike.