Mastering Spreads | The Options Playbook: Mastering the Art of Derivatives

📄️ The Bull Call Spread: A Defined-Risk Bullish Strategy

Learn how to construct a bull call spread, a powerful, cost-effective strategy for expressing a moderately bullish view with limited risk.

Learn how to construct a bear put spread, a powerful, cost-effective strategy for expressing a moderately bearish view with limited risk.

Discover the bull put spread, a credit spread strategy that profits from a rising or sideways market with a high probability of success.

Learn to trade the bear call spread, a credit spread strategy that profits from a falling or sideways market with a high probability of success.

A deep dive into the art and science of selecting the right strike prices for your vertical spreads to balance risk, reward, and probability.

Learn the essential skills of trade management, including when to take profits, how to cut losses, and when to adjust a spread position.

Understand how implied volatility (IV) affects your spread positions and learn to use it to your strategic advantage.

Learn how to analyze the risk-to-reward ratio of your spread trades to make smarter, more consistent trading decisions.

Explore advanced spread configurations like ratio spreads and backspreads to create unique risk/reward profiles.

A step-by-step walkthrough of a real-world vertical spread trade, from initial analysis to final profit.