In this scenario, selling an out-of-the-money6 vertical put credit spread might be worth considering. Selling a vertical put credit spread is a bullish strategy that attempts to profit from a price increase of the underlying as well as a decrease in volatility. Alternatively, if an option ...
Selling vertical spreads: A refresher The term “short vertical spread” can be a mouthful, but it simply means you’reselling a put or call optionfor a credit and simultaneously purchasing a long put or call option of the same expiration date, but further out of the money. So with a sho...
bearput spreadbreakout tradingreversal tradingtime decaytrend tradingSummary A bearish vertical spread is a good alternative to take a short position when bearish on an underlying security. The cost of a trade along with exposure to time decay is reduced when a bear spread is implemented. A ...