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 ...
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.
Butterfly spreads involve buying one option at a lower strike price, selling two options at a middle strike price, and buying one option at a higher strike price. This strategy is typically used to ...
Learn the basics of options trading, what calls and puts are, how options work, and strategies to hedge or speculate with ...
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 ...
Tesla (TSLA) has pulled back in recent weeks with the stock down 8.37% in the last month. Today we’re looking at a broken wing butterfly trade that creates a profit zone between 220 and 240. Yesterday ...
Netflix (NFLX) shot higher following theirearnings calllast week, but there is now a large unfilled gap between 500 and 540. Today we’re looking at a broken wing butterfly trade that creates a profit ...
Credit spreads might seem intimidating, but they're a lower-risk way to sell put premium A short put spread is a neutral-to-bullish options strategy that is usually initiated when the trader believes ...
A bull put spread is an options strategy where you sell a put option at a higher price and buy one at a lower price for the same asset and expiration date. This helps generate income and limits losses ...
While index funds provide broad market exposure to credit and interest rate (duration) risk, they do not take advantage of a persistent market inefficiency called the volatility risk premium. OVT uses ...