Bull Call Debit Spread Explained

A bull call spread is a vertical spread that relies on two calls with the different strike prices and same expiration date. The strike price of the short call is higher than the strike price of the long call, which means this strategy is a debit spread, but the short call option can be utilized to offset […]

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Understanding Open Interest For Options Buyers and Sellers

When you examine an options chain, there will be a column that’s titled open interest, which can be a very useful tool for options traders. The open interest shows all open options contracts that are available for exercise have not been closed out. For example, if you opened or initiated a trade by purchasing 10 […]

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Are You an Options Buyer or an Options Seller?

Often times when traders first begin trading options, they have a difficult time deciding whether or not they should be buying options or selling them instead. With stocks, you are limited to buying and selling shares.  But with options, you have calls, puts, combination spreads and to make things more confusing; different strike prices and expiration […]

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Difference between American and European Style Options

Today, I’m going to discuss the major difference between the two styles of options, American and European. There are various differences between the two types of options that you need to know about. Not knowing the difference between the two options styles can cause unnecessary loss to your portfolio which is something that can be easily avoided […]

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