A debit spread is an options strategy that involves the purchase and sale of the same class of options A debit spread is an options strategy that involves the purchase and sale of the same class of ...

The term ‘spread’ can have several different interpretations depending on where it is used in the financial space. A spread is often used to refer to the difference in bid and ask prices on an ...

What Are Vertical Debit Spreads? And Why Use Them? Besides answering these questions, this article will also help you understand why you should use a spread instead of a call or put. This article will ...

One of the primary advantages of option trading is the chance to define and potentially limit risk right up front. There’s a tasty little sample stock that can help us explore short verticals: ...

I want you to think about the last stock you purchased. Now think about why you chose to buy stock in that company. Certainly, you did your due diligence. You know the revenues, profits and expenses, ...

Investopedia contributors come from a range of backgrounds, and over 25 years there have been thousands of expert writers and editors who have contributed. Thomas J Catalano is a CFP and Registered ...

Not only the title of a hit 1973 movie and Oscar winning Best Original Score song but, especially during earnings season, may be how you feel about a stock you are regularly following and once held as ...

Experienced options traders know that there are more ways to profit from options than just purchasing them and hoping they land in the money. There are ways to mitigate risk and maximize the potential ...