Options allow traders to profit with basic or advanced strategies, based on calls and puts, but are not risk-free, exposing ...

A short call is the reverse strategy to the long call. Every long call that ... If the stock may plummet, traders may instead consider put options. Let’s say that stock DEF is trading at ...

The maximum profit occurs if the stock stays between the short put and short ... if the price moves beyond the long strikes of the put or the call. This strategy is favored by traders who are ...

They can be constructed using calls or puts and have variations like the long, short, iron, and reverse iron butterfly spreads. These strategies are market-neutral and aim to profit from low ...

A long call spread -- also known as a "bull call spread" -- is a modified version of the long call strategy ... collected a premium of 0.15 for the short call, your net debit on the spread ...

By combining a short put and a long call at the same strike ... risk is one of the main attractions of a traditional call-buying strategy.) As a result, the synthetic long is best reserved ...