Options Education - Spreads 

 Options educational content provided courtesy of ChartBender.

When you combine two or more different option contracts to create a desired risk profile, you have created an option spread.

We will discuss four types of spreads here:

1. Vertical Spreads
2. Time Spreads
3. Straddles & Strangles
4. Diagonal Spreads

Excluding the diagonal spread, the spreads above are the most basic spreads, and they serve as the foundation for many other spreads. (A diagonal is the combination of a vertical spread and a time spread.)

• Vertical Spreads
• Time Spreads
• Straddles & Strangles
• Diagonal Spreads

This educational content is provided by ChartBender.
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