Overview: Call Debit Spreads on Trending Stocks Call debit spreads are directional trades designed to benefit from upward price movement while managing risk. This strategy involves buying a call and simultaneously selling a higher strike call with the same expiration.…
Introduction to Options Trading Options trading has become increasingly popular among investors who seek to diversify their portfolios and enhance returns. At its core, options are financial derivatives that provide the buyer with the right, but not the obligation, to…
Dispelling The Myth With An UNH Trade In a recent post I addressed one of the most common misconceptions about if there is any real advantage of credit spreads over debit spreads even when implied volatility is high. Here I…
Correcting a Common Misconception on Vertical Spreads When I was taught options at Online Trading Academy they taught us that when volatility is high or inflated you should sell credit spreads and when volatility was low you should use debit…