Often times, traders or investors combine options using the price differential strategy, and buy one or more options to sell one or more different options. Spread will offset the premium paid because the premium sold option will go up against the premium purchased option. Moreover, risk risks and spread returns will determine potential profit or loss. Spreads could be created to take advantage of almost any expected price movement and can range from simple to complicated the big. As with individual options, any spread strategy can be bought or sold
Choices do not have to be difficult to understand once you understand the basic concepts. Iron Condor can provide opportunities when used properly and can harm
The main goal of the covered call is to collect income by option premiums by selling calls for shares you already own. Assuming the stock does not move above the strike price, you are collecting the insurance premium and maintaining your equity position (which can still profit up to the execution price) when used incorrectly.
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