If you like the risk/reward of the Debit Spread strategy but are bearish:Bear Put Debit Spreads Help If you are Bullish on the stock but prefer credit spreads:Bull Put Credit Spreads Help For more information on the Parity Strategy to Bull Call Debit spreads:Parity Trading - Option Spreadsan...
As the name of the strategy suggests, a bear call spread is used when someone is bearish on the underlying asset. Bear call spreads are often used when an investor believes that the underlying asset will undergo a moderate decline in price but wants to limit any potential loss. It's a re...
Is Buying a Call Bullish or Bearish? Buying calls is bullish because the buyer only profits if the price of the shares rises. Conversely, selling call options isbearishbecause the seller profits if the shares do not rise. Whereas the profits of a call buyer are theoretically unlimited, the p...
Bull call spread, also known as long call spread, is abullishoption strategy, typically done when a trader expects the underlying security to increase in price, but not too much. It haslimited riskandlimited upside potential. A bull call spread position consists of two call options –buying a...
Long Call Ladder Spread - ClassificationType of Strategy : Bullish | Type of Spread : Vertical Spread | Debit or Credit : Debit The Long Call Ladder Spread is part of the "Ladder Spreads" family. Ladder Spreads add an additional further out of the money option on top of two legged ...
Bull Call Spread Bear Put Spread Long Straddle Iron Butterfly Iron Condor Strategy Groups Single Leg With Underlying Straddles Strangles Butterflies Condors Vertical Spreads Calendar Spreads Diagonal Spreads Ratio Spreads Ladders Box Spreads Synthetics By Exposure Bullish Strategies Bearish Strategies Long Vola...
This bear call spreads strategy is a bearish strategy as you expect the stock to remain below the short (sold) strike price. An investor wants both options to expire worthless so they will retain the entire net credit. The maximum risk in a bear call spread is the difference between the ...
Spread Strategies are multi-leg strategies that involve more than two options. By multi-leg strategies, we mean the strategy that has more than 2 option transactions. When the trader has an outlook of moderate bullish on a stock or an index, then the spread strategy like Bull Call Spread ca...
It is the most fundamental call spread strategy. In this, the short and long calls have varying strike prices but the same expiry. We can further classify this spread intobullish or bearish: Bull Vertical Call Spread– a trader uses this strategy when they expect the rate of the underlying ...
The position would be a net debit of $150 instead of a net credit. When a Call Diagonal Ratio Spread is a net debit position, it would not be able to make any money if the stock goes down. In this case, you should short the Jan45Calls instead as illustrated in the first example ...