The term ‘spread’ can have several different interpretations depending on where it is used in the financial space. A spread is often used to refer to the difference in bid and ask prices on an ...
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 ...
A debit spread is an options strategy that involves the purchase and sale of the same class of options with the same expiration date but different strike prices. Right now, this may sound confusing, ...
The market continues to show some encouraging signs and if that continues, bull put spread trades could do well. To execute a bull put spread, an investor would sell a naked put and then buy a further ...
NDX options are an incredibly useful tool for both investors and traders. When two different options are combined into a spread they allow hedgers to protect a position and allow speculators to take ...
Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. As such, Schaeffer's are ...
First, the Expected Move. The Expected Move is the amount that options traders believe a stock price will move up or down. It can serve as a quick way to see where real-money option traders are ...
The Simplify Enhanced Income ETF aims to generate high income from selling option spreads on equity and fixed income indices. However, the actual portfolio differs from how the fund is marketed. The ...
Adam Hayes, Ph.D., CFA, is a financial writer with 15+ years Wall Street experience as a derivatives trader. Besides his extensive derivative trading expertise, Adam is an expert in economics and ...