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1. Bull call spread. In this strategy, the trader buys a call at a low strike price and sells a call at a high strike price with the same expiration. The trader expects the stock to rise toward or ...
The straddle is an options trading strategy, so named for the shape it makes on a pricing chart; your position literally “straddles” the price of the underlying asset. With the straddle, you ...
1. Long call. In this option trading strategy, the trader buys a call — referred to as “going long” a call — and expects the stock price to exceed the strike price by expiration. The ...
Mildly bullish trading strategies are options that make money as long as the underlying asset price does not decrease to the strike price by the option's expiration date. These strategies may provide downside protection as well. Writing out-of-the-money covered calls is a good example of such a strategy. The purchaser of the covered call is ...
A player calling a raise before they have invested money in the pot in that round is cold calling. For example, if in a betting round, Alice bets, Dianne raises, and Carol calls, Carol "calls two bets cold". A player calling instead of raising with a strong hand is smooth calling or flat calling, a form of slow play .
Short straddle. A short straddle is a non-directional options trading strategy that involves simultaneously selling a put and a call of the same underlying security, strike price and expiration date. The profit is limited to the premium received from the sale of put and call. The risk is virtually unlimited as large moves of the underlying ...
act. To make a play (check, bet, call, raise, or fold) at the required time, compare to in turn. acting out of turn. A player in poker that either announces their actions or physically plays before their turn (checks, folds etc.). Sometimes players act out of turn intentionally to get a read out of other players.
Leverage also makes options trading a particularly fast-moving and lucrative play. Futures have similarities with options, though both have important differences to be aware of . 4 strategies for ...