Vertical Spread
A spread using options with the same expiration but different strike prices.
Explanation
Vertical spreads are the building blocks of options strategies. They can be bullish (bull call spread, bull put spread) or bearish (bear call spread, bear put spread). The "vertical" refers to different strikes on the same expiration column of the options chain. They provide defined risk and defined reward.
Example
A bull call spread: buy the 150 call and sell the 155 call, both expiring March 17, for a net debit of $2.00. Max risk is $2.00; max reward is $3.00.