By vanko on January 24, 2010
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 [...]
Posted in Develop Your Skill | Tagged getting, mastery, options, or, out, position, rolling, the, trading
By vanko on January 8, 2010
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 [...]
Posted in Develop Your Skill | Tagged and, decay, mastery, opportunities, options, time, trading, volatility
By vanko on December 6, 2009
Let’s put together what we’ve been talking about, develop an imaginary spread scenario and set it in real life events. In October, let’s say that you begin to hear about IJK stock. It looks interesting, so you then use a variety of sources to learn about IJK: news, charts, outside analysts, internet research etc. From [...]
Posted in Develop Your Skill | Tagged mastery, options, scenario, spread, test, trading, vertical
By vanko on November 1, 2009
Vertical spreads can have various names. The same vertical spread could be called several different things by several different people. We have used two terms only: vertical call spread and vertical put spread. Each of these two spreads allows for two positions, long and short. The long vertical call spread is constructed by buying one [...]
Posted in Develop Your Skill | Tagged mastery, options, recap, spread, trading, vertical
