A box spread is an options strategy that involves buying a bull call spread and a bear put spread on the same underlying asset. It’s a risk-free arbitrage trade when…
A butterfly spread is an options strategy involving: Buying one option at a lower strike price. Selling two options at a middle strike price. Buying one option at a higher…
A calendar spread involves buying and selling options with the same strike price but different expiration dates. Traders use it to take advantage of time decay differences.
