Epicentral LabsSpreads Introduction
Understanding advanced options strategies and spread positions.
Advanced Techniques and Positions for Options Trading
As stated on Learning the Foundation, fractionalization is key to implementing advanced strategies in options and derivative trading. By maximizing capital efficiency, traders distribute their funds across multiple contracts and positions to increase the odds of profit in their favor—also known as hedging.
Traders create win-win scenarios by utilizing various "Spread Strategies."
Spreads
Spreads are used in both TradFi and DeFi options trading. They require combining multiple options (buying and selling different strike prices or expiration dates) to manage cost, risk, or directional bias.
Spreads in Options Trading
Traders combine multiple call options and put options to create spread positions that help manage portfolio risks and optimize capital allocation.
Bullish Spreads
Bearish Spreads
Delta-Neutral & Volatility Spreads
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Traders are responsible for consulting with qualified financial professionals to determine whether any information or services discussed on this website are suitable for their specific financial situation, objectives, and risk tolerance.
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Disclaimer
Epicentral Labs does not, and will not, provide any information in the form of financial advice. Traders must conduct their own research (DYOR). All actions and liabilities are incurred by the trader.
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