Bid and ask are two points of a price quote. Bid is the price investors will pay for an asset, while ask is the price they’ll sell it for.
A butterfly spread involves four options contracts at threestrikeorexerciseprices and is commonly structured using calls or puts. The setup caps both risk and reward, making it ideal for low-volatility trading environments. Relative to directional options strategies, butterfly spreads offer a cost-ef...
Horizontal Spread:A horizontal spread, also known as a calendar spread, is a strategy that involves simultaneously buying and selling options of the same stock with the same strike price but different expiration dates. This strategy aims to benefit from the difference in time decay between the opt...
An option is a contract giving the buyer the right—but not the obligation—to buy (in the case of a call) or sell (in the case of a put) the underlying asset at a specific price on or before a certain date. People use options for income, to speculate, and to hedge risk. ...
What are Butterfly Options? What is a Condor Spread? What is a Secular Market? What is an Option-Adjusted Spread? In Finance, what is a Calendar Spread? Discussion Comments Byanon150743— On Feb 08, 2011 One of the worst definitions of a bull spread that I've ever read. ...
Iron Butterfly Iron Condor Naked Options Protective Put Short Call Vertical Debit Spread Vertical Spread Intermediate Options Strategies Calendar Spread Diagonal Spread Jade Lizard Poor Man Covered Call Poor Man Covered Put ZEBRA Advanced Options Strategies Broken Wing Butterfly Collar Option Long Butter...
A bear spread may employ the use of either put options or call options in order to crate the ideal option strategy. The bear spread approach that makes use of the call put approach is somewhat similar. With this strategy, the focus is on using puts rather than calls to achieve an increas...
The definition of a call option is a contract that is sold by one party to another that gives the buyer the right, but not the obligation, to purchase an underlying stock at a specified price, known as the strike price, by an agreed-upon expiration date.
In the options universe, “implied volatility crush” (aka volatility crush) refers to a significant decrease in the implied volatility of a particular option, or a group of options. Implied volatility (aka IV) is a measure of the market's expectation of future volatility, which is a critical...
An option is a contract giving the buyer the right—but not the obligation—to buy (in the case of a call) or sell (in the case of a put) the underlying asset at a specific price on or before a certain date. People use options for income, to speculate, and to hedge risk. ...