One of the ways active traders can secure bullish or bearish exposure with limited risk is by using a vertical spread. In this blog article, we’ll break down what this strategy is and how it can help you reach your financial goals. What Is a Vertical Spread? A vertical spread is an options trading strategy… Read more.
In trading, as in life, timing is everything. Often, the difference between winning and losing is not what you do but when you do it. For traders who want to implement butterfly spread strategies, the timing quandary is no different. Read on to learn more about these types of trades and when executing one is… Read more.
Recently, I had a number of clients involved in a futures spread in the live cattle market. The idea behind the trade was to get long the cattle market heading into the summer by buying in the front month and selling in the back month – specifically, they were buying June Live Cattle and simultaneously… Read more.
Savvy traders, who understand the term structures of futures markets, often use the butterfly futures spread to isolate certain contracts in which they feel demand or supply will be the strongest or weakest.
Readers of this blog should be very familiar with option spreads. We have written in the past (Option Spreads Examined Further: Measured Ways to Play Your Market Hunch, Bear Put Spreads: An Alternative to Purchasing Puts, and Bull Call Spreads: An Alternative to Purchasing Calls) about the different ways traders can participate in leveraged markets… Read more.
Options are a great way to get involved with the futures markets. One of the most popular ways to trade with options is to buy puts.
Options are a great way to get involved with the futures markets. One of the most popular ways to trade with options is to buy calls.
When it comes to Futures Spreads, many traders ask us what is the benefit of spreading futures contracts. They want to know why we often choose to spread futures contracts instead of either being long or short a single futures contract or option, or use option spreads instead.
Why do some traders prefer to spread trade versus trading outright futures contracts? The contracts often selected by the trader may be typically trading parallel to one another giving the trader only the “differential” moves between the two contracts. One may take any two markets that they observe have differentials between the price movement and… Read more.