Spread strategies

By roma, 11 January, 2021

The butterfly spread reacts differently to changes in implied volatility, depending on the price level on the volatility smile graph.

By roma, 10 January, 2021

Butterfly spread has certain characteristics that depend on sensitivity to price variations in the underlying asset, its delta ∆.

By roma, 6 January, 2021

Butterfly spread is a "classic" options strategy, which combines the simultaneous purchase and sale of three options with three different strikes.

By roma, 21 August, 2020

Inexperienced traders tend to ignore the volatility when building an option position. To understand the relationship between volatility and most option strategies, it is important to read the vega in more detail. 

By roma, 16 August, 2020

Very often people start trading options with little understanding of how many different strategies can be used to limit risks and maximize profits. However, traders must first learn how to utilize options. With this in mind, this article aims to speed up the learning process.

 

By roma, 21 August, 2020

Option strategy risk reversal is designed to trade the volatility skew and is formed by buying OTM put option and selling OTM call option. This strategy protects investor from a fall in the price of th