A short iron condor spread realizes its maximum profit if the stock price is equal to or between the strike prices of the short options on the expiration date. The forecast, therefore, can either be “neutral,”“modestly bullish” or “modestly bearish,” depending on the relationship of the...
Short puts are commonly used by investors who are bullish on a particular asset and believe that its price will either stay the same or rise over time. This strategy allows them to generate income through the premium received from selling the put option, while potentially gaining the opportunity...
Complex bullish option strategies, such as the Naked Put Write, usually have added benefits such as profiting even if the underlying stock stays stagnant or profiting even if the underlying stock should fall slightly instead of rise. This is because short options positions putstime decayin your fa...
The many variations of swing trading with options have mainly involved one type of option and equal balance: long or short, put or call, and the same number of contracts in both bullish and bearish conditions. This chapter examines a var... MC Thomsett - Palgrave Macmillan US 被引量: 0发...
In options trading, a long call and short put represent a bullish market outlook. But the way these positions express that view manifests very differently.
Ashort squeezecan happen when bullish news pushes a stock price higher, prompting short sellers to simultaneously head for the exits. As the shorts scramble to buy back and cover losses, upward momentum builds upon itself, and the stock can move sharply higher. The GameStop trade in 2021 is...
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 Volatility Strategies ...
(You can see how we arrived at the $1 credit in Ex.3, and from this point forward, we’ll just focus on the net credit or debit to trade a spread.) But what if your forecast was wrong, the stock makes a bullish short-term move to $55.50 with 15 days remaining until expiration,...
The Max Gain is limited to the net premium received for the option spread.Characteristics When to use: When you are bullish or bearish on market direction and bullish on volatility. Short put butterfly's have the same characteristics as the Short Call Butterfly - the only difference is that...
Bull Calendar Spread Bull Call Spread Bull Put Spread Covered Call Collar Bull Butterfly Spread Bull Condor Spread Bullish Limited Risk Unlimited Profits Fiduciary Calls Long Calls Short Bull Ratio Spread Bullish Unlimited Risk Limited Profits Bull Ratio Spread Naked Put Write Cash Secured Put Long Ca...