January 13, 2009
How can I use the call spread in an option trading?
Tessie asked:
I just learn option trading and I don’t know how to use the call spread. Any ideas? Thanks.
I just learn option trading and I don’t know how to use the call spread. Any ideas? Thanks.
Filed under Investing by Administrator

Comments on How can I use the call spread in an option trading?
First you need to understand there are many different types of call spreads. The simplest is probably a bullish vertical call spread. Here are two examples of one:
The next simplest is probably a Short Out-of-the-Money Vertical Call Spread. Here is an example of one:
There are any number of other call spreads possible, including calander spreads, butterflies, condors, christmas trees, ratio spreads, backspreads, diagonal spreads, etc. The best way to learn about them, IMHO, is to read a good book about options.