Vertical Spreads: Capture Profit with Lower Cost | #OptionsHandbook EP047
@Option_Lab:
Ever struggled with this dilemma: buying an option costs too much, but selling an option alone feels way too risky? Don’t worry! With vertical spreads, you can cut costs, cap losses, and trade with confidence. In The Options Handbook, you’ll find four main types of vertical spread strategies. Let’s take a look! (And join the events at the end to win rewards!) 🎁 ▶ What is a Vertical Spread? 🤔 A vertical spread means buying and selling options on the same stock, with the same expiration date, but at different strike prices. In this way, you profit from price movements in the underlying stock while using the premium you collect from selling one option to offset part of the cost of buying the other. ▶