Spreads are an essential part of many traders’ arsenal. They add flexibility, a range of risk-reward profiles and the ability to trade virtually any market forecast: bullish, bearish, calm or volatile.
When it comes to the two basic trading biases, bullish and bearish, traders have to come to a decision: when bullish, should they opt for a bull call spread or a bull put spread? And when bearish, the choice is between a bear put spread and a bear call spread. Are there any differences between these pairs, and if so, what are they?
Trade options, stocks, futures + forex on a single platform. thinkorswim by TD Ameritrade.
OPTIONS+ is the new mobile options calculator for iPhone users. Download it today.
Get up to $500. Trade commission free for 90 days. Free tools for advanced traders.
Commission Free Trades. Get up to $500 - trade commission free for 90 days & advanced tools.
Download CBOE's new iOS app featuring detailed quotes & option chains, CBOETV, interactive courses, and more.
*Third Party Advertisement