What is a Butterfly Spread? A butterfly spread is an options trading strategy that involves the simultaneous purchase and sale of three options with the same expiration date but different strike prices. This strategy can be constructed using either call options or put options, depending on market conditions and the trader’s outlook. There are two … Read more
What are Credit Spreads? Credit spreads is an options trading strategy that involves the simultaneous purchase and sale of two options with different strike prices but the same expiration date. These two options are typically from the same class, either both calls credit spreads or both puts credit spreads. The options are referred to as … Read more
Long put and long call are fundamental components of options trading, each offering unique strategies for investors. What is a Long Call? A long call, also known as a “buy call” or “call option,” is a financial contract that gives the holder the right but not the obligation to purchase a specific underlying asset, such … Read more
Iron condor, butterfly spread, credit spreads are most used strategies for sideways market movement. In a sideways or range-bound market, where the underlying asset’s price is not experiencing significant upward or downward trends but rather moving within a certain range, traders often use options strategies that can profit from limited price movement or that generate … Read more