A Vertical Spread is an options strategy in which options are bought and an equal number of options of the same type (Puts or Calls) are sold with different strike prices, but with the same expiration date.
I’ve recently written about the popular strategies of Straddles and Strangles. For the most part, they were discussed from the long side. Obviously, there is another side to this story, and that is the short side, selling the Straddle or Strangle.
Okay, so it probably won’t make you rich knowing more about option symbols than 99 percent of the non-professional options traders out there, but it will keep you from making mistakes when dealing with your broker, and in some circles, can make you a hit
What accounts for the increase in options volume? While banks and institutions have been using exchange traded options for many years, the general public is beginning to see that options don’t have to be risky .