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Vertical spreads can sometimes approximate binary options, and can be produced using vanilla options. Bull vertical spread - Bull call spread and bull put spread are bullish vertical spreads constructed using calls and puts respectively.
The iron condor is an options trading strategy utilizing two vertical spreads – a put spread and a call spread with the same expiration and four different strikes. A long iron condor is essentially selling both sides of the underlying instrument by simultaneously shorting the same number of calls and puts, then covering each position with the purchase of further out of the money call(s) and ...
In options trading, a bull spread is a bullish, vertical spread options strategy that is designed to profit from a moderate rise in the price of the underlying security. Because of put–call parity , a bull spread can be constructed using either put options or call options .
A spread position is entered by buying and selling options of the same class on the same underlying security but with different strike prices or expiration dates. An option spread shouldn't be confused with a spread option. The three main classes of spreads are the horizontal spread, the vertical spread and the diagonal spread. They are grouped ...
In options trading, a bear spread is a bearish, vertical spread options strategy that can be used when the options trader is moderately bearish on the underlying security. Because of put–call parity , a bear spread can be constructed using either put options or call options .
A condor can be thought of as a spread of two vertical spreads, [5] as a modification of a strangle with limited risk, [1] or as a modification of a butterfly where the options in the body have different strike prices. [3]