by Henry Liverman | May 28, 2021 | Market Definitions
A trading strategy attempting to profit from the low volatility of an underlying asset. An iron condor options strategy consists of two puts (a long and a short) and two calls (also a long and a short) along with four strike prices, all with the same expiration...
by Henry Liverman | May 27, 2021 | Market Definitions
An options trade that uses 4 different contracts as part of a wider strategy to benefit from stocks or futures prices moving within a defined range. It is constructed similarly to a short-straddle trade, with a long call and long put option purchased for protection. ...
by Henry Liverman | May 27, 2021 | Market Definitions
Also called a net debit spread. A strategy involving a investor simultaneously buying an option with a higher premium and selling an option with a lower premium. The investor is said to be a “net buyer” and expects the premiums of the two options (or the...
by Henry Liverman | May 27, 2021 | Market Definitions
An options strategy involving the purchase of one option and the sale of a second option in the same class and expiration but with different strike prices. This is designed to make a profit when the spreads between the two options narrows. Investors receive net...
by Henry Liverman | May 27, 2021 | Market Definitions
An options trading strategy designed to take advantage of a stock’s limited increase in price. It achieves this by placing two call options to create a range consisting of a lower and upper strike price. This helps limit the losses (but also caps the gains). ...
by Henry Liverman | May 27, 2021 | Market Definitions
An options trading strategy used by a bearish investor to maximize profit and minimize loss. When the trader expects the decline of a security or asset price, a bear put spread may be implemented by purchasing put options while also selling the same number of puts on...
