Advantages of the Bull Put Credit Spread Strategy: The bull put spreads strategy is a BULLISH strategy, the entire profit can be realized when the stock price is above the short option strike price at expiration without closing either PUT position. Partial profit may be realized if the stock ...
To capitalize on sideways to marginally higher markets: Put writing and bull put spreads are optimal strategies for markets and stocks that are trading sideways to marginally higher. Other bullish strategies, such as buying calls or initiating bull call spreads, would not work as well in such mar...
The bull put spread is an options strategy for moderately bullish investors. This technique allows traders to generate immediate income through premium collection while capping maximum gains and losses. It's beneficial insidewaysor slightly upward-trending markets, providing downside protection. However, ...
If you like the risk/reward of the Bear Put Spread strategy but are bullish:Bull Call Debit Spreads Help If you are Bearish on the stock but prefer credit spreads:Bear Call Credit Spreads Help For more information on the Parity Strategy to Bear Put Debit spreads:Parity Trading - Option Spre...
strong bearish sentiment and the possibility of a market bottom. A relatively low put-call ratio with heavy trading volume in calls indicates very bullish sentiment and a probable market top. As with many other technical indicators, use of the put-call ratio assumes that most investors are ...
Put Ratio Backspread : A complex volatile put spread consisting of buying at the money or out of the money Put Options and writing in the money Put Options against it. Advantages of Put SpreadsAs you can see above, there are Put Spreads for every market outlook; Bullish, Bearish, Neutral ...
Type of Strategy : Bearish | Type of Spread : Vertical Spread | Debit or Credit : Debit The Long Put 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 spreads, stepping the position down by ...
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 ...
A debit put spread is a very common spread to use with a bearish outlook. You are expecting the stock to move to the downside, and you're willing to limit your potential gains by selling the out-of-the-money put to offset your costs. ...
Explains the Option chain, the different Expiry series and the selection of the appropriate Call Option for a bullish strategy How Option chains are laid out on a real platform Detailed analysis of an Option seller's position Demonstrate how the three types of Options work on AAPL Options ...