Options Trading Blog If you decide to create consistent positive cashflow from option trading, you may wish to consider the advantages of options spread trading over simply buying calls or puts and hoping for the market to go in the anticipated direction. Option spreads can be used in a number of ways, from the simple debit or credit spread, to more advanced and complex strategies such as the calendar spread, the butterfly, the iron condor and the like. Options Trading Blog So what is it that defines an option spread? It is simply about taking opposite positions in terms of buying to open and selling to open (ie. writing) a number of option contracts for the same underlying financial instrument, but using different strike prices or expiry dates, thus creating a spread of positions as part of a single strategy. Advantages Creating a spread can give a number of advantages…

September 2nd, 2010
Money maker
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