Bear Call Spread. An alternative name is Credit Call Spread. Bearish position. It is a vertical spread involving an equal number of long and short calls on the same underlying asset and with the same expiration date. It is a credit spread, which means you receive money to put on the position. The strategy profits as long as the price of the underlying security remains below the breakeven point.
We prepared a major update for Option Workshop. Many new features have been added to help our users trade efficiently. In the new version, you can change the position’s opening price, set the commission for the exchange/underlying assets/option series/futures, display the IV curves for several pricing models simultaneously, etc.
Straddle. An alternative name is Long Straddle. Neutral position. It is a combination involving an equal number of long puts and long calls at the same strike price and the same expiration date. It is a debit combination, which means you must pay to put on the position. Buy to open one at-the-money (ATM) call and simultaneously buy to open one ATM put.
Long strangle, poor-man’s straddle. Neutral position. It is a combination involving an equal number of out-of-the-money (OTM) long puts and long calls with the same expiration date. It is a debit combination, which means you must pay to put on the position. The strategy profits when the price of the underlying security moves up or down beyond the breakeven points.
Strategy name and alternative names Vertical bull debit call spread. An alternative shorter name is bull call spread. Main characteristics Moderately bullish. It is a vertical spread, which means it involves two or more options at different strike prices with the same expiration date.
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Options trading can appear intimidating to some traders. To make money, you must understand how option values fluctuate, the risks of option positions and the regulations pertaining to option expiration. You can have option positions that expire after periods ranging from one day to more than a year.
Options trading can appear intimidating to some traders. To make money, you must understand how option values fluctuate, the risks of option positions and the regulations pertaining to option expiration. You can have option positions that expire after periods ranging from one day to more than a year.
