The diagonal put spread buys a long term put and sells a short term put. There are various relationships of days to expiration, deltas and price that the trader needs to decide between. Optimizing the ...
I would like to continue my discussion of spreading time by describing diagonal calendar spread options. This spread, unlike the horizontal calendar spread, uses different strikes. It is a slightly ...
Options are an increasingly popular way for traders to play the market, and it’s no surprise why. Options let you make some big money if you’re right, potentially multiplying your money, perhaps in ...
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 ...
When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...