Capital Discussions

Investor and Trader discussion, education and financial services

Vertical Spreads: Introducing the Bear Call Spread

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One of the numerous strategies available to traders are vertical spreads. Credit spreads come in two varieties: the Bear Call spread and the Bull Put spread. This article will cover the Bear Call Spread …how they are constructed, how much can be gained, as well as how much capital can be lost. We will talk about Bull Put spreads in a … [Read more...] about Vertical Spreads: Introducing the Bear Call Spread

The Time Bomb Butterfly Versus Vertical Spread

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Mark Fenton wrote an article about the Time Bomb Butterfly. Mark said "one of the best butterfly strategies is the time bomb butterfly." There isn't one best strategy as each strategy has its pros and cons. The time bomb butterfly suffers from a very low probability of profit and negative expected return. I wondered what other strategy … [Read more...] about The Time Bomb Butterfly Versus Vertical Spread