Calendar spreads are an option trade that involves selling a short-term option and buying a longer-term option with the same strike. Traders can use calls or puts and they can be set up to be neutral, ...
An options strategy that works well if you belong to the “sell in May and go away” camp is the “calendar” (or “time”) spread. This is also a good strategy in a low-volatility environment, such as the ...
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 ...
JPMorgan Chase is a highly rated stock that has had a nice recovery. But JP Morgan stock could be due for a pause here as the stock sits right between the 21-day exponential moving average and 50-day ...
Calendar spreads involve buying an option with a longer expiration date and selling an option with a shorter expiration date. This strategy is typically used to profit from a decrease in implied ...
Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. As such, Schaeffer's are ...
Options allow for greater flexibility when it comes to expressing a wide variety of market outlooks. Implied volatility tends to rise into earnings events, providing options sellers with potential ...
Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Katrina Ávila Munichiello is an experienced editor, writer, fact-checker, and ...
Traders typically think of options as a way to quickly multiply their money, and sure, they can do that. But options can also ...