Spread Trading

Vertical spreads involve buying and selling options with the same expiration but different strike prices. This strategy offers directional exposure with limited risk and reward.

Iron condors profit from an underlying asset remaining within a defined price range. This non-directional strategy involves selling both a call spread and a put spread.

Ratio spreads involve buying and selling different numbers of options with varying strike prices. These strategies are complex, offering exposure to directional movement and volatility.

Calendar spreads profit from differing time decay rates between options. This strategy involves buying and selling options with the same strike price but different expiration dates.