How do I use the spread option to a sales call? I just learn options trading and I do not know how to use the spread of Appeal. Ideas? Thank you.
You must first understand that there are many types of demand variations. The easiest way is probably a bull call vertical spread. Here are two examples of:
http://www.cboe.com/Strategies/WeeklyStr ...
http://www.cboe.com/Strategies/WeeklyStr ...
The next single is probably a short out-of-the-money Call Vertical Spread. Here's an example:
http://www.cboe.com/Strategies/WeeklyStr ...
There are a number of other calls spreads possible, including calendar spreads, butterflies, condors, Christmas trees, rate differentials, backspreads, diagonal spreads, etc. The best way to learn about them, in my humble opinion, is to read a good book on options.
Posted on February 11, 2010.
