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There are several types of spread positions. They are:

Bullish Call Spread-You expect a rise in the underlying stock but are not very certain. You buy a call and then write a call at a higher strike price. Our example above is a bullish call spread.

Bullish Put Spread - You expect a rise in the underlying stock but are not very certain.You buy a put and then write a put at a higher strike price.

Bearish Call Spread - You expect a fall in the underlying stock but are not very certain. You buy a call and then write a call at a lower strike price.

Bearish Put Spread - You expect a fall in the underlying stock but are not very certain. You buy a put and then write a put at a lower strike price.

As if the above types weren't enough, there are more types of spreads:

Time Or Calendar Spreads - The options have the same strike prices but different expiration dates.

Price Or Vertical Spreads - The options have the same expiration dates but different strike prices. Our example above was a vertical bullish call spread.

Diagonal Spreads - A combination of both vertical and calendar spreads where the options have different strike prices and different expiration dates. …