Explore 10 essential options strategies every investor should know, from basic calls and puts to advanced spreads, risks, rewards, and real-world use cases explained.

What Is a Vertical Spread? Vertical spreads in options trading involve buying and selling options of the same type with the same expiration date but different strike prices. Traders use vertical ...

We have spent a lot of time talking about ticks, spreads and trading costs in the equities markets. Today, we take a look at options trading. As we know, options markets are very different to stocks – ...

Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. As such, Schaeffer's are ...

What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...

As Schaeffer's Investment Research is not affiliated with Fidelity, this article can only provide general steps on how to buy a call debit spread on Fidelity. However, keep in mind that financial ...

Spread trading is a common tactic when dealing with options, and there are many spread strategies designed to pursue profit while mitigating risk. At the nexus of these strategies is the box spread. A ...

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 ...

In options trading a credit spread is an options play where a trader buys one option and sales another option contract of the same stock and expiration but at different strike price levels. This type ...

When traders first start using options, they often employ them either as a way to take a directional view on an asset (buying a call if they expect it to rise or a put if they expect it to fall) or as ...

Options trading is the buying and selling of options contracts in the market, usually on a public exchange. Options are often the next level of security that new investors learn about following their ...