The term ‘spread’ can have several different interpretations depending on where it is used in the financial space. A spread is often used to refer to the difference in bid and ask prices on an ...
I would like to continue my discussion of spreading time by describing diagonal calendar spread options. This spread, unlike the horizontal calendar spread, uses different strikes. It is a slightly ...
The diagonal put spread buys a long term put and sells a short term put. There are various relationships of days to expiration, deltas and price that the trader needs to decide between. Optimizing the ...
A bullish diagonal spread is an advanced option trade and generally not suitable for beginners, but it can have its place within an option portfolio. It is a bullish strategy that benefits from time ...
Previously, we discussed why going long on a near-week lower strike call and short on a next-week call higher strike on the Nifty Index may not be optimal. This week, we explore the reverse of this ...
Options are an increasingly popular way for traders to play the market, and it’s no surprise why. Options let you make some big money if you’re right, potentially multiplying your money, perhaps in ...
A reverse calendar spread involves buying a short-term option and selling a long-term option on the same security, commonly used for strategic trading positions.