Stock option spreads

One very effective way to make money in the stock market is by trading Spreads. Spreads are techniques using Calls and Puts. They are used to put together the power of options with protection.

There are a wide variety of spreads for different situations. For example, a Bull Put Spread or a Bear Call Spread can help you make money when the stock goes up, sideways or down. This means if you think a stock is going up you can do a spread and if it does not go up you can still make money. You don't even have to be right to profit.

The opposite of the above spreads is a bear call spread ; it can help you make money when the market goes down, sideways or even up a little. Just like the spreads above you don't even have to be right to make money!

Don't you just love the Stock Market! Here is another strategy for a Bear Market called the Bear Put Spread , click on the link to see how it works.

Another type of spread is a Straddle , it can help you make money as long as the stock makes a big move. They are normally used during news events when you don't know how the news will affect a stock. Straddles can give you great profit potential when you are unclear of the stocks direction.

Another strategy for a News Event is the Strangle .

What if the market or stock is trending sideways? What is an investor to do? How about an

You can also try a more conservative approach with the Collar

Have you ever traded spreads before? Have you had any success? Do you have any tip? Tell Us!