Tags Posts tagged with "spread options"

spread options


If you find yourself repeating the same trades day-in and day-out – and a lot of active traders do this at some point – you may be left searching for more. If these repetitive trades are consistently losing you money or just breaking even, why then wouldn’t you want to search for strategies with better outcomes?


In highly volatile and uncertain markets that we are seeing of late, stop losses cannot always be relied on to protect downside risk. This is where risk defined trades come in.


A basic credit spread involves selling an out-of-the-money option while simultaneously purchasing a further out-of-the-money option.