Option spreads are common strategies used to help minimize risk or forecast various market outcomes using two or more options. Understanding the features of four basic types of vertical spreads and learning how to deploy these strategies effectively in a given trading environment is essential. In this webinar, we will discuss:
- Basic features of call vertical spreads (bull and bear)
- Basic features of put vertical spreads (bull and bear)
- Risks/potential rewards when trading spreads
- Key considerations for spread trading
Options trading entails significant risk and is not appropriate for all investors. Certain complex options strategies carry additional risk. Before trading options, please read Characteristics and Risks of Standardized Options. Supporting documentation for any claims, if applicable, will be furnished upon request.
There are additional costs associated with option strategies that call for multiple purchases and sales of options, such as spreads, straddles, and collars, as compared with a single option trade.
The views expressed are as of the date indicated and may change based on market or other conditions. Unless otherwise noted, the opinions provided are those of the speaker or author, as applicable, and not necessarily those of Fidelity Investments. The experts are not employed by Fidelity but may receive compensation from Fidelity for their services.