For traders interested in an options strategy that's designed to take advantage of directional moves but with defined risk, a vertical spread could be a strategy to consider. There are different types of vertical spreads, but their mechanics have some similarities. A call vertical, for example,...
Call Options Have Clearly Defined Risk When a call option is purchased, the trader instantly knows the maximum amount of money they can possibly lose. Themax loss is always the premium paidto own the option contract; in this example, $60. ...
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