Explore spread trading with AIBull's advanced tools, designed to help you analyze and execute Bull and Bear spreads effectively. Whether you're new to options or an experienced trader, our platform simplifies spread analysis, allowing you to compare strategies and understand risks and rewards. Learn how a spread generally works and optimize your trading decisions with confidence.
Long call for upside potential; limited downside risk.
Buy a lower call & sell a higher call. Reduced cost, capped upside.
Sell put for premium; obligation to buy shares if assigned.
Sell higher strike put & buy lower strike put. Limited risk & reward.
Buy ITM LEAPS call, sell shorter-term OTM call. Also known as Poor Man's Covered Call.
Own stock, buy protective put & sell covered call. Also known as Risk-reversal.
Sell 1 ITM call (below ATM) and buy 2 OTM calls (2 strikes higher than ATM for better spread).
Own stock, sell ATM call & put. High income but significant downside risk.
Own stock, sell OTM call & put. Less risky version of covered straddle.
Modified put butterfly with bullish bias. Also known as Skip Strike Butterfly.
Inverse of call broken wing. Also known as Inverse Skip Strike Butterfly.
Short OTM put with OTM bear call spread. No upside risk when properly structured.
Buy 2 ATM calls & 1 ATM put. More profit potential on upside moves.
Buy fewer calls, sell more calls at higher strike. Ratio-based risk.
Buy ATM call & sell ATM put. Simulates long stock position with minimal cost.
Buy OTM call & sell OTM put. Neutral between strikes, profit beyond them.