James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...
With markets in crisis, it’s a good time to check in on our bear put spread screener. A bear put spread is a vertical spread that aims to profit from a stock declining in price. It has a bearish ...
A debit spread is an options strategy that involves the purchase and sale of the same class of options with the same expiration date but different strike prices. Right now, this may sound confusing, ...
What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...
Spread trading is a common tactic when dealing with options, and there are many spread strategies designed to pursue profit while mitigating risk. At the nexus of these strategies is the box spread. A ...
Condors are versatile options trading strategies that provide more opportunities to profit. An options trader can set up a condor or iron condor to profit from a sideways market or volatile one.
First, the Expected Move. The Expected Move is the amount that options traders believe a stock price will move up or down. It can serve as a quick way to see where real-money option traders are ...
Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and ...
A put ratio spread is an advanced option trade and generally not suitable for beginners, but it can have its place within an option portfolio. It is generally considered a neutral strategy, although ...
Credit spread is a term with a couple of different meanings in the world of investing. Specifically, it has applications in both the bond market and in the context of derivative investments like ...