Here’s how short calls and long calls work and the key differences ... If the stock may plummet, traders may instead consider ...

By combining a long put and a short call at the same strike, the position offers gains on a bearish move, while a bullish move can translate quickly into steep losses. So, if you'd like to sell a ...

They can be constructed using calls or puts and have variations like the long, short, iron, and reverse iron butterfly spreads. These strategies are market-neutral and aim to profit from low ...

That's the short summary of these options contracts. Now, let's take a closer look at how call and put options work, as well as the risks involved with options trading. A call option is a contract ...

Stella Osoba is the Senior Editor of trading and investing at Investopedia. She co-founded and chaired Women in Technical Analysis. She has 15+ years of experience as a financial writer and ...

In other words, put-call ratios should be taken with a grain of salt and examined alongside other sentiment indicators, such as short interest, to get a fuller picture of where an asset stands in ...

A long put vertical spread is a bearish position involving a long and short put with different strike prices in the same expiration. When setting up a put debit spread, the long put is more expensive ...