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 ...
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.
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 ...
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 ...
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, ...
Let’s start by stating the obvious. Commodities exist in the physical world. That means they are very different from stocks, bonds or cryptocurrencies. Those asset classes can move around the world ...
Leveraged trading with spread betting and contracts for difference (CFDs) isn’t for everyone. It certainly won’t form the core of a strategy for most MoneyWeek readers. However, for some people, short ...