Playbook: Spreads: the Dual Bear Spread (Delta Buster)
Dual Bear Spread (Delta Buster) The delta buster combines an inexpensive ATM long bear put spread , typically 10-point/$10 wide, with an expensive OTM short bear call spread that results …
Dual Bear Spread (Delta Buster) The delta buster combines an inexpensive ATM long bear put spread , typically 10-point/$10 wide, with an expensive OTM short bear call spread that results …
Short Iron Condor This strategy can be profitable for stocks that are rangebound (have no direction, go sideways). It is the combination of a bull put spread and a bear …
Bear Call The bear call (or ‘call credit spread’) is a vertical credit spread (you will receive a premium for it). It is a short call ‘protected’ on the upside …
Bull Put The bull put (or ‘put credit spread’) is a vertical credit spread (you will receive a premium for it). It is a short put ‘protected’ on the downside …
Bear Put The bear put is a vertical debit spread (you will have to pay for it). It is a long put ‘protected’ on the upside by a short put. …
Bull Call The bull call is a vertical debit spread (you will have to pay for it). It is a long call ‘protected’ on the downside by a short call. …
Long Put The long put is the opposite of the long call. A put is an option to sell. The seller has the obligation to take the other side (sell …
Short (Naked) Put The short put (or ‘naked put’) is the opposite of the short call and looks like the long call since it is also bullish. It is a …
Covered Call This is one of the most used income strategies and is highly effective when done on a regular (monthly) basis. Covered call = own/buy (long) underlying + sell …
Cash-Secured Put When running this strategy, you may wish to consider selling the put slightly out of the money. If you do so, you’re hoping that the stock will make a …