spreads

Bear Spreads In contrast to the bull spreads, bear spreads are used as a strategy when one is bearish of the market, believing that it is more likely to go down than up. Like a bull spread, a bear spread may be created by buying a call with one exercise price and selling another one with a...

One of the most popular spread strategies is a bull spread. A bull spread reflects the bullish sentiment of a trader and can be created by purchasing a call option on a stock and selling another call on the stock and with the same expiry but a higher exercise price. At expiry, if the stock...

There are times when you think the market is going to fall over the next two months, however in the event that the market does not fall, you would like to limit your downside. One way you could do this is by entering into a spread. A spread trading strategy involves taking a position in two or...

There are times when you think the market is going to rise over the next two months, however in the event that the market does not rise, you would like to limit your downside. One way you could do this is by entering into a spread. A spread trading strategy involves taking a position in two...