Option spread trading

Author: ilya1 Date of post: 08.06.2017

Follow Terry's Tips on Twitter. Like Terry's Tips on Facebook. Watch Terry's Tips on YouTube. An option spread is created when one option is purchased and another is sold simultaneously.

option spread trading

The two options typically have different strike prices or expiration dates, and the trader who placed the spread order only has to come up with the cash difference between the option being bought and the one being sold.

An option spread generally has a lower degree of risk and maximum profit potential than the outright purchase or sale of a single option. This week we are featuring an option trading idea based on a stock on the IBD Top 50 List that just delivered robust earnings guidance. Alibaba, broke out to fresh all-time highs last week following better than expected financial results both on the top and bottom line.

Prices have been forming a bull flag pattern which is a pause that refreshes higher. If you concur with the views expressed by these analysts, consider making this trade which is a bet that BABA will continue to advance or at least not decline very much over the next five weeks:. I hope that it is of interest to you. Arista Networks is up Here are two of them - With legal risks fading, Barclays raises Arista Networks target and Needham: If you concur with the views expressed by these analysts, consider making this trade which is a bet that ANET will continue to advance or at least not decline very much over the next five weeks:.

Option Spreads | Terrys Tips

In one of our portfolios, we use this list to find stocks which have displayed a strong upward momentum, and we place spreads which will profit if the upward momentum continues for about six more weeks.

Actually, the stock can even fall a little for the maximum gain to be made on these spreads.

option spread trading

Several articles have recently been published on the positive outlook for NVDA. Here are two of them - Nvidia: If you agree with these analysts, option spread trading might consider making this trade which is a bet that NVDA will continue its upward momentum or pourquoi trader les futures least not decline very much over the next six weeks:.

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Option Spread Strategies | #1 in Options Results

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option spread trading

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Options are not suitable for all investors as the special risks inherent to options trading my expose investors to potentially rapid and substantial losses. Please read Characteristics and Risks of Standardized Options before investing in options.

Vermont website design, graphic design, and web hosting provided by Vermont Design Works. Option Spreads An option spread is created when one option is purchased and another is sold simultaneously. Credit Spreads Debit Spreads Vertical Spreads Iron Condor. Terry's Tips Stock Options Trading Blog June 21, Is Alibaba BABA Ready to Accelerate Higher? Terry Is Alibaba BABA Ready to Accelerate Higher? If you concur with the views expressed by these analysts, consider making this trade which is a bet that BABA will continue to advance or at least not decline very much over the next five weeks: Is Arista Networks ANET Ready For An Acceleration To The Upside?

Options spread - Wikipedia

Terry Is Arista Networks ANET Ready For An Acceleration To The Upside? If you concur with the views expressed by these analysts, consider making this trade which is a bet that ANET will continue to advance or at least not decline very much over the next five weeks: Will Nvdia NVDA Continue Its Upward Momentum?

Terry Will Nvdia NVDA Continue Its Upward Momentum? If you agree with these analysts, you might consider making this trade which is a bet that NVDA will continue its upward momentum or at least not decline very much over the next six weeks: Buy To Open NVDA 21Jul17 puts NVDAP Read Full Article.

In This Section Call Options Put Options Option LEAPS The Greeks Options Tutorials Option Spreads Credit Spreads Debit Spreads Vertical Spreads Iron Condor Covered Calls Disadvantages of Option Trading Glossary.

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