A long call spread gives you the right to buy stock at strike price A and obligates you to sellt he stock at strike price B if assigned.
A long call spread gives you the right to buy stock at strike price A and obligates you to sellt he stock at strike price B if assigned.
This strategy is an alternative to buying a long call . Selling a cheaper call with higher-strike B helps to offset the cost of the call you buy at strike A. That ultimately limits your risk. The bad news is, to get the reduction in risk, you’re going to have to sacrifice some potential profit.
A long call gives you the right to buy the underlying stock at strike price A. Calls may be used as an alternative to buying stock outright. You can profit if the stock rises, without taking on all of the downside risk that would result from owning the stock.
A long put gives you the right to sell the underlying stock at strike price A. If there were no such thing as puts, the only way to benefit from a downward movement in the market would be to sell stock short.
Buying the LEAPS call gives you the right to buy the stock at strike A. Selling the call at strike B obligates you to sell the stock at that strike price if you’re assigned...
A long call spread gives you the right to buy stock at strike price A and obligates you to sell the stock at strike price B if assigned. This strategy is an alternative to buying a long call . Selling a cheaper call with higher-strike B helps to offset the cost of the call you buy at strike A...
A long put spread gives you the right to sell stock at strike price B and obligates you to buy stock at strike price A if assigned. This strategy is an alternative to buying a long put...