Here is a great webinar held on Vertical Spreads by Lee. What are Vertical Spreads? In a Nutshell Vertical Spreads involve two options of the same type, with the same expiration, but with different strike prices. One of the options is purchased (or long), and the other is sold (or short). Two common types of vertical spreads are the Bull Call Spread and the Bear Put Spread. Instead of just trading puts and calls, Vertical Spreads offer a way to limit your risk and/or cost.