Option Spread Trading: A Comprehensive Guide to Strategies and Tactics

Option Spread TRADING

When dealing with option spreads, you're looking to purchase one option in conjunction with the sale of another option. If managed properly, these spreads can provide experienced investors with the potential for significant returns without undertaking a great deal of risk.

Option Spread Trading provides a comprehensive, yet easy-to-understand explanation of this approach, and shows you how to select the best spread strategy for any market condition. Opening with an informative introduction that covers essential option knowledge, the "Greeks," and much more, this practical guide quickly moves on to discuss a variety of spread strategies and how you can use them to capture consistent profits. Page by page, it:

• Highlights all manner of spreads, from calendar and ratio spreads to bull and bear spreads

• Addresses how you can monitor and adjust an existing spread position and provides tips on exiting a spread trade

• Includes examples to test and reinforce your knowledge of the concepts presented

Written by Russell Rhoads—an instructor for the Options Institute at the CBOE—Option Spread Trading contains practical guidance that will allow you to successfully incorporate this proven approach into your everyday trading endeavors.