Category: OPTION SPREAD TRADING

Rolling Credit Spreads

Rolling Credit Spreads to Preserve Profits When speaking about rolling credit spreads we need to distinguish the concept from two other common terms, namely “rolling out” and “rolling out and up/down”. The first of these refers to extending the expiry dates on your credit spread positions to a later month but with the same strike […]

Advantage Credit Spreads

The One Big Advantage Credit Spreads Give the Options Trader When your credit spread is in trouble there is a concept called ‘rolling out’ and this singular strategy is what provides the advantage credit spreads offer the trader. Let’s take an imaginary scenario, where during the current we have taken out a credit put spread, […]

Vertical Spreads

Vertical Spreads – What They Are and How you Can Use Them Vertical spreads involve a combination of options positions where an equal number of options are simulatneously bought and sold but all positions have the same expiration date. To be clasified “vertical” and not diagonal spreads, the expiration dates need to be the same. […]

Bull Call Spreads

Bull Call Spreads – A Step by Step Action Guide Bull call spreads are option trading strategies involving the simultaneous purchase of call options at a lower strike price and shorting (selling) the same amount of call options at a higher strike price. Both long and short positions will have the same expiration date. They […]

Iron Condor Spread

The Iron Condor Spread – Make a Killing With This Bird You might think that iron condor spread is a strange name for an option trading strategy – and indeed it is. But in a way, the image it presents is well suited to the setup. The condor was a large prehistoric bird. Like any […]

Ratio Backspreads

Ratio Backspreads – Profit Even When You’re Wrong Ratio backspreads are considered to be one of the safest longer term option trading strategies available today. So much so, that they have sometimes been called “vacation spreads” because you can literally take a holiday and come back later to find they’ve made a profit for you. […]

Calendar Spread Strategies

Calendar Spread Strategies – Harnessing the Power of Time Decay Calendar Spread strategies are a popular low risk, high profit potential, alternative for traders who believe that an underlying financial instrument such as a stock or commodity, is going to be trading within a range in the near term. The reason it is called a […]

Trading Debit Spreads

Why Trading Debit Spreads Has Clear Advantages Debit spreads are given this name simply because, in the end, they take money from your brokerage account – i.e. a debit to your balance. They are called ‘spreads’ because you have included more than one option position in the combination. They are one form of ‘vertical spread’, […]

Credit Spread Advantages

Credit Spread Advantages for the Options Trader When your credit spread is in trouble there is a concept called ‘rolling out’ and this singular strategy is one of the best credit spread advantages for the trader. Let’s take an imaginary scenario, where during the current we have taken out a credit put spread, usually called […]

How to do Credit Spreads

How to Do Credit Spreads – Risk and Probability of Success This matter of how to do credit spreads is really interesting. There are huge benefits with this nice option trading strategy where you BUY the same number of option contracts, call or put, at one strike price and simultaneously SELL the same number of […]

Credit Spreads

Option Credit Spreads – Low Risk Option Trading The Stock Market is one of the largest markets in the world, so it is going to be around for a long time. This means that if we can master a few strategies that bring consistent profits, it is not inconceivable that we could set ourselves up […]

Bull Call Spreads – A Step by Step Action Guide

Bull call spreads are option trading strategies involving the simultaneous purchase of call options at a lower strike price and shorting (selling) the same amount of call options at a higher strike price. Both long and short positions will have the same expiry date. They are called “bull call spreads” because you enter them on […]

How to Trade Options © 2016 Frontier Theme