OPTIONTIGER BLOG

GET INSIGHTS OF FINANCIAL MARKETS, OPTIONS TRADING AND INVESTING.

What are Option spreads

What are Option spreads

 

Option spreads goes to the heart of Options trading. Once you’ve mastered Option spreads, you’re now in a position to maximize your return opportunities from Options trading.

 

Many newcomers to Options are scared of spreads – when in fact, the primary advantage of spreads is either to reduce costs or reduce risks. There are two kinds of Option spreads – Credit spreads and debit spreads.

 

And within these categories there are 4 Option spreads – the Bull Call spread, the Bear Call spread, the Bull Put spread and the Bear Put spread.

 

But why use Option spreads ? And what advantages do they provide the options trader ?

 

Here’s a video that briefly describes the concept. For more information on these spreads, please refer to Module 4 of the OptionTiger courseware.

 

 


Share this Article



Leave a Reply

Your email address will not be published. Required fields are marked *

Get access to Free Courses, E-Books, Market Updates and 500+ Video Library.

Join Free Now!




Futures and Options carry risk and may not be suitable for everyone. OptionTiger is an educational site, and is not a financial adviser or broker. If you need professional investment advice, please consult a registered investment adviser. All stocks, ETFs, commodities, Indices and other securities mentioned in our courses are for educational and illustrative purposes only, including all mention of Returns, Margin Calculations, and different Margin types. By visiting our site and accessing material, you are implicitly agreeing to these terms.
Copyright © 2012 to 2018 - All Rights Reserved by OptionTiger.com