Imagine a scenario: You’re an investor, and you believe the price of a particular stock will decline significantly over the next few weeks or months. But here’s the twist—you want to limit your potential loss while still benefiting from the downward movement in price. You could simply buy a put opti...
Categories: Options Trading
Debit spread trading is one of the most widely used options strategies by both novice and experienced traders. It provides a balance of risk and reward, which is attractive for those looking to profit from the price movement of a stock or security while limiting losses. With the right debit spread c...
When trading options, the Iron Condor is a popular strategy known for its ability to generate consistent returns within a defined range of price movements. But what happens when we consider its opposite? In this article, we will dive deep into the Iron Butterfly, a strategy that represents the polar...