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.

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 ...

Cory Mitchell, CMT is the founder of TradeThatSwing.com. He has been a professional day and swing trader since 2005. Cory is an expert on stock, forex and futures price action trading strategies.

A debit spread is an options strategy that involves the purchase and sale of the same class of options with the same expiration date but different strike prices. Right now, this may sound confusing, ...

Butterfly spreads use specific option combos to bet on stock volatility levels. Long butterfly spreads profit if the stock price hits the middle strike at expiration. Short butterfly spreads gain most ...

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 ...

First, the Expected Move. The Expected Move is the amount that options traders believe a stock price will move up or down. It can serve as a quick way to see where real-money option traders are ...

CSHI invests in T-bills and S&P 500 put option spreads to generate income. CSHI yields 6.2% and has low volatility and drawdowns. The fund may experience small losses during severe bear markets, but ...

Bull call spreads involve buying and selling call options at different strike prices. This strategy caps potential losses to the net debit paid while also capping gains. Used by investors expecting ...

Simplify Enhanced Income ETF is an actively managed fund that uses options plays to generate income, selling option credit spreads rather than covered calls. The fund targets a delta range of 25-30 ...

A debit spread is an options strategy that involves the purchase and sale of the same class of options with the same expiration date but different strike prices. Right now, this may sound confusing, ...