What is a calendar spread? A calendar spread is an options trading strategy where you simultaneously buy one options contract and sell another. In other words, you open two positions at the same time ...
James Chen, CMT is an expert trader, investment adviser, and global market strategist. Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician ...
What are the types of options spread strategies? There are three main types of options spread strategy: vertical, horizontal and diagonal. A vertical spread strategy – sometimes known as a money ...
CSOs are options on the spread between two different futures expirations. The energy futures term structure represents the time value of energy market variables such as storage costs, seasonality and ...
Calendar spreads are a versatile options strategy that allows traders to capitalize on time decay and changes in implied volatility. This strategy involves selling a short-term option while ...
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, ...
In a previous article options backspreads, which benefit from volatile trading conditions, were explained in more depth. Today’s discussion is about its counterpart, the options frontspread. A ...