Posts Tagged ‘Trading Mastery’


Options Trading Mastery: Getting Out or Rolling the Position

The selection and management of a vertical spread are only two-thirds of the game. Closing out, rolling or morphing the position has to be analyzed and executed with the same due diligence as was used in the selection and management processes.Looking at the closing out of a vertical call spread, we find there are three [...]

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Options Trading Mastery: Construction & Value of a Vertical Spread

Construction of a vertical spread occurs with the purchase and sale of a call (put) in the same stock and in the same month. The only difference between the two options is the strike price. For example, an investor would construct a vertical spread by purchasing the IBM June 55-call while selling the June IBM [...]

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Options Trading Mastery: Time Decay and Volatility Trading Opportunities

When vertical spreads are mentioned, they quite often come with monikers such as ‘bull’ and ‘bear’. This lends most to think of vertical spreads as directional plays which is true. However, vertical spreads can be used to take advantage of two other potential trading opportunities – time decay and volatility movement.If you are looking for [...]

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