Options vertical spreads are options trading strategies that involve simultaneously buying and selling options of the same underlying asset, and the same expiration date, but with different strike prices. They are called “vertical” spreads because the different strike prices create…

The diagonal spread is a strategy where you enter into long and short positions simultaneously by buying and selling the same types of options (calls or puts), but with different strike prices and different expiration dates. This options trading strategy…

In options trading the Long Straddle and Long Strangle are strategies that bear certain similarities. Both involve buying an equal amount of calls and puts, with the same expiration date. And both are profitable when there is a significant movement…

With such a large scope of options trading strategies, it is easy to get lost in the complexity of it all. And it’s important to master some basic strategies before diving into the more complicated methods. In this article, we…