Top Gun Options Market Intelligence
What Is a Bull Put Spread?
A useful options strategy to profit when price action is bullish or neutral is a bull put spread. With this strategy, a trader sells a put with a higher strike price and buys a put with a lower strike price. The expiration date and underlying stock are the same for...
What Is a Short Call Condor Spread?
A useful options strategy when you expect an increase in volatility is a short call condor spread. This trade is set up with four options contracts. You will sell a lower in the money call, buy a lower to middle in the money call, purchase a higher out of the money...
What Is a Diagonal Spread?
A versatile options strategy that can be applied to bullish or bearish conditions is a diagonal spread. It is a modified calendar spread in which the trader sets up two options trades with different strike prices and expiration dates. It can be used with either calls...
What Is a Short Straddle?
An options strategy that profits when a stock exhibits no price movement is a short straddle. To execute this trade, sell a call and a put on the same stock at the same strike price and with the same expiration date. When properly chosen, the profit is the sum of the...
What Is a Long Calendar Spread with Calls?
A long calendar spread with calls is an options strategy used to profit from neutral price action near its strike prices and has limited upside and downside risk. You can create the long calendar spread with calls by purchasing a long-term call and selling a...
What Is a Short Put Ladder?
A short put ladder is a stock options strategy that provides almost unlimited opportunity if the stock in question falls in price. Traders use this strategy first of all to profit from falling stock prices. And, it is used when a stock’s implied volatility drops...