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 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 ...
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.
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 ...
When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...