Bull Put and Bear Call Credit Spreads Spreading Options Allow You a Trader to Control Risk, While Assuming an Advantageous Position in the Market. The Bull Put Credit Spread As the name implies, the Bull Put Spread carries a bullish bias and is constructed with put options. Let us assume that XYZ Company is currently
Vertical Credit Spread Option Trading Using a Bull Put or Bear Call Spread as a High Probability Stock Option TradeThe vertical credit spread is a limited risk option trade involving the simultaneous purchase and sale of two differing option contracts. This trading strategy is designed to produce an immediate cash credit to the trader's account
Theta and Time Decay Time Decay and Implied Volatility are two key considerations in the option trading decision making process.Stock options have limited life spans. As an option nears its expiration date it loses time value. Understanding this loss of time value, allows us to increase the probability of seeing profits in our option trading.
Stock Option Pricing and the Greeks Option Prices Are Effected By Several Factors Called The Greeks, And It Is Critical You Understand What They Are. Options are derivative securities. They derive their value from some underlying security or index and their price is affected by a number of factors. Because of their derivative nature, they