To that end, we’re definitely fans of buying puts and calls, no matter what your level of options experience is. The potential for explosive returns without the need for betting the farm on each trade is unrivaled in the investing world. But we’re also fans of broadening our horizons and investing in options is [...]
If you decide to create consistent positive cashflow from option trading, you may wish to consider the advantages of options spread trading over simply buying calls or puts and hoping for the market to go in the anticipated direction. Option spreads can be used in a number of ways, from the simple debit or credit [...]
A butterfly option is an options strategy using multiple puts and/or calls to make a bet on future volatility without guessing in which direction the market will move. It is a combination trade constructed from three sets of either puts or calls having the same expiration date but different strikes or exercise prices. There are [...]