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  2. 5 option strategies for advanced investors - AOL

    www.aol.com/finance/5-option-strategies-advanced...

    The bear put spread improves the breakeven price, which would be $19 with a long put alone, but is now only $19.50 with the spread strategy, or the long put’s strike price minus the net premium.

  3. Diagonal spread - Wikipedia

    en.wikipedia.org/wiki/Diagonal_spread

    In derivatives trading, the term diagonal spread is applied to an options spread position that shares features of both a calendar spread and a vertical spread.It is established by simultaneously buying and selling equal amount of option contracts of the same type (call options or put options) but with different strike prices and expiration dates.

  4. Options strategy - Wikipedia

    en.wikipedia.org/wiki/Options_strategy

    Many options strategies are built around spreads and combinations of spreads. For example, a bull put spread is basically a bull spread that is also a credit spread while the iron butterfly can be broken down into a combination of a bull put spread and a bear call spread .

  5. Best options strategies for generating monthly income - AOL

    www.aol.com/finance/best-options-strategies...

    The iron condor is an advanced options strategy that combines a bear call spread (strategy No. 3) and a bull put spread (strategy No. 4). So it involves four separate legs, making it a complex ...

  6. Spread option - Wikipedia

    en.wikipedia.org/wiki/Spread_option

    In finance, a spread option is a type of option where the payoff is based on the difference in price between two underlying assets. For example, the two assets could be crude oil and heating oil; trading such an option might be of interest to oil refineries, whose profits are a function of the difference between these two prices.

  7. Ratio spread - Wikipedia

    en.wikipedia.org/wiki/Ratio_spread

    The "straight" ratio-spread describes this strategy if the trader buys and writes (sells) options having the same expiration. If, instead, the trader executes this strategy by buying options having expiration in one month but writing (selling) options having expiration in a different month, this is known as a ratio-diagonal trade.

  8. Ladder (option combination) - Wikipedia

    en.wikipedia.org/wiki/Ladder_(option_combination)

    [1] [2] Ladders are in some ways similar to strangles, vertical spreads, condors, or ratio spreads. [1] [3] [4] A long call ladder consists of buying a call at one strike price and selling a call at each of two higher strike prices, while a long put ladder consists of buying a put at one strike price and selling a put at each of two lower ...

  9. Finite difference methods for option pricing - Wikipedia

    en.wikipedia.org/wiki/Finite_difference_methods...

    As above, the PDE is expressed in a discretized form, using finite differences, and the evolution in the option price is then modelled using a lattice with corresponding dimensions: time runs from 0 to maturity; and price runs from 0 to a "high" value, such that the option is deeply in or out of the money.