Option Spreads often, we can make sound assessment on where an underlying maybe heading towards but quite lacking the correct skillsets to capitalize on that judgement.
for most investors/traders, buying or shorting stocks, indexes, ETFs, even commodities are just about the only ways to engage the market.
fortunately, Options as the derivative, can be deployed in more ways than one, either to manage portoflio risks, obtaining acceptable risk/reward returns, or simply to profit, and thus may be used as an alternative investment vehicle to trading the actual underlying.
over time, i hope to dwell into each of these Option Spreads and strategies, postulate when each can be deployed under different market conditions, their associated risks, rewards and profit potential. meanwhile, below lists the various Option Spreads and suggests which ones can be deployed under 4 different market conditions.
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