tailieunhanh - 101Option Trading Secrets Section 6

Section 6 Spreading. Option spreading is another unique advantage of the option markets. Option spreads enable you to create strategies where you limit your risks and maximize your gains. Spreads allow you to adjust your positions as the market changes to neutralize market risks. | Section 6 Spreading Secret THE SPREAD ADVANTAGE Option spreading is another unique advantage of the option markets. Option spreads enable you to create strategies where you limit your risks and maximize your gains. Spreads allow you to adjust your positions as the market changes to neutralize market risks. Credit spreads debit spreads straddles stripes and straps are all types of option spreads. A well designed spread is one with an excellent risk-reward picture. For the option buyer spreads are to use baseball jargon for those who are satisfied with singles and doubles instead of home runs. For the option writer spreads can remove the unlimited risk present with naked writing. The big advantage of spreads is that spreads can be designed with a high probability of profit and very limited risk. At the end of the book we will disclose two of the best plays in the option markets spreads with these features.