Saturday, April 19, 2008

Option Basics-The Bear Call Credit Spread

I love Stock Options. They offer a variety of ways to make money, control risk, greatly increase the ROI (Return on Investment) and conserve capital. One strategy that could be very applicable in these volatile times is the Bear Call Credit Spread. The title describes the strategy: The trader thinks that the price of the underlying has a high probability of remaining in a tight range or will decrease in value. Thus, the terminology “Bear”. A call is when the trader purchases the rights to bu

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