While it’s tempting to search for narrative insights that the market may have missed, chances are, whatever major drivers ...

Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.

Using SQ as an example, we can see how option spreads might be used to reduce capital outlay and potentially improve the probability of profits (versus buying outright calls or puts). We will also ...

What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...

Calendar spreads are a versatile options strategy that allows traders to capitalize on time decay and changes in implied volatility. This strategy involves selling a short-term option while ...

Understand the market-maker spread as the price gap between buying and selling offers by market makers, and how it compensates for market-making risks.

Spread trading is a common tactic when dealing with options, and there are many spread strategies designed to pursue profit while mitigating risk. At the nexus of these strategies is the box spread. A ...

Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike. Traders can use calls or puts and they can be set up to be neutral, ...