spread

A delta neutral trade is one in which a long and short option offset one another with net value or cost at or near zero. The theme of delta neutrality can refer to many differently constructed strategies, including spreads (covered and uncovered) and straddles. When an option position is...

When traders begin checking out the many ways to use options, the spread presents the greatest opportunities as well as challenges. Don't let the gentle names fool you - the butterfly sounds like a soft, gentle strategy, but it might not be after all. The butterfly is a complex strategy, so...

CSCO is breaking a downtrend that started back in February.  The break is taking place on decent volume.  We just set an alert at 16.10.  If the alert sounds, we will do one of two things: Buy shares of CSCO and sell front month 17 Calls against them Buy a 15/16 front month Call spread