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 ...
Opposite of the short put spread, a short call spread is a neutral-to-bearish options strategy that is employed by traders who expect a stock to remain below a layer of resistance. This type of spread ...
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.
The market continues to see an uptick in volatility while simultaneously printing higher stock prices. This usually means there is a topping formation in progress. That said, financials continue to ...
All week, we've been unpacking options strategies with cool names. Next up, the iron butterfly is a flexible options strategy that can be placed using call or put options, but each trade's risk and ...
A long call butterfly is entered when a trader thinks a stock will not rise or fall by much between trade initiation and expiration. When using calls, the trade is constructed by buying an ...
To construct a short call spread, you would first identify a chart level that has served as resistance in the past Opposite of the short put spread, a short call spread is a neutral-to-bearish options ...