James Chen, CMT is an expert trader, investment adviser, and global market strategist. Samantha (Sam) Silberstein, CFP®, CSLP®, EA, is an experienced financial consultant. She has a demonstrated ...

What Is a Butterfly Spread? When markets are volatile, experienced investors may seek to profit by adopting a complex option strategy like butterfly spreads. By using these strategies, investors can ...

First, the Expected Move. The Expected Move is the amount that options traders believe a stock price will move up or down. It can serve as a quick way to see where real-money option traders are ...

Hey everyone – Scott Bauer from Prosper Trading Academy here. In exploring advanced options strategies, it’s crucial to understand how variations can be applied to tailor risk and reward. Today, I’m ...

In simple terms, a spread is an option strategy, or position, that is composed of both long option contracts and short option contracts on the same underlying security (or index). The two sides of the ...

Two weeks ago, I wrote about the Simplify Enhanced Income ETF (HIGH), which invests in T-bills and equity option spreads. HIGH offers investors a strong 9.4% distribution yield, with low realized ...

Spread trading is a common tactic when dealing with options, and there are many spread strategies designed to pursue profit while mitigating risk. At the nexus of these strategies is the box spread. A ...

Lucas Downey is the co-founder of MoneyFlows, and an Investopedia Academy instructor. Vikki Velasquez is a researcher and writer who has managed, coordinated, and directed various community and ...

Simplify Enhanced Income ETF is an actively managed fund that uses options plays to generate income, selling option credit spreads rather than covered calls. The fund targets a delta range of 25-30 ...

Credit spread is a term with a couple of different meanings in the world of investing. Specifically, it has applications in both the bond market and in the context of derivative investments like ...