A bull call spread is an options strategy used to profit from moderate increases in the underlying asset’s price while limiting risk. It involves buying a call option at a lower strike price and ...

Explore how to buy option spreads. This approach reduces risk by selling a less expensive option and buying another, aiming ...

It’s inevitable that, on any given day, Wall Street is mispricing a publicly traded security’s option premium. Specifically, the standard Black-Scholes model effectively states the following for debit ...

A bear call spread is a type of vertical spread, meaning that two options within the same expiry month are being traded. One call option is being sold, which generates a credit for the trader. Another ...

Bull call spreads involve buying and selling call options at different strike prices. This strategy caps potential losses to the net debit paid while also capping gains. Used by investors expecting ...

To construct a short call spread, you would first identify a chart level that has served as resistance in the past Opposite of the short put spread, a short call spread is a neutral-to-bearish options ...

A Bear Call Spread is used when you have a neutral to negative view on a stock. While this strategy has a limited risk, it also has a limited reward. So if you're expecting a big down move to occur, ...