A vertical spread is a type of options spread. A vertical spread combines selling and buying inside positions to create an positions in the same security with different strike prices and expiration dates. An example of this type of strategy would be: Buying 1 XYZ Option @ 100 Strike Selling 1 XYZ Option @ 105 Strike As the name suggests the width of this strategy depends on the number of premiums collected and paid. The width is determined by the number of strike prices involved in the spread (2 in this case) – however spreads of more than two strike prices are also possible. If XYZ stock is trading at $100 a share at the time of writing this article, an option to buy at $100 would cost $2 and an option to sell at $105 would be worth $1.50.