The beauty of vertical options spread is that you can design trades in stocks or futures based on a specific market outlook. Traders can use option strategies to define the levels of risk and reward.
The beauty of vertical options spread is that you can design trades in stocks or futures based on a specific market outlook. Traders can use option strategies to define the levels of risk and reward.
With less than two weeks left before the election, many option traders might be hoping to buy volatility in the hopes that the market will make a quick change.
Crude options volatility rose as futures slipped below a $100 a barrel amid rising stockpiles. Implied volatility for at-the-money December options was 19.79% at 2:20 p.m. on the New York Mercantile Exchange, from 19.06% on Oct. 18.
Over the past week crude oil prices have been rocked by conflicting macroeconomic data and a suspected price-fixing scandal, leaving many investors questioning the validity of current price levels. Tap into that volatility with a put spread.
Unlike most other markets, the options market continues to expand. To help you get a head-start, here are 10 basic option strategies every trader should understand.
