Options Education

OIC301C: Introduction to Spreading

Course Objective:

The objective of the course is to introduce the basic characteristics of vertical spreads, the differences between bullish and bearish call and put spreads the risks and rewards of the strategies and explain the primary motive of using spreads.

Who Should Take This Course:

Advanced students

Course Description:

This class will introduce you to the concept of "spreading". We will cover the use of basic bullish and bearish call and put spreads - i.e. simultaneously purchasing and writing calls (or puts) with different strike prices. We'll investigate how and why the potential risk and reward profiles for these strategies differ from those of simple long calls or long puts. You will also see what might motivate an investor to use simple bull or bear spreads.

Course Chapters

Chapter 1 - Introduction

Introduces the user to the basic characteristics of vertical spreads with graphs, examples and terminology.

Chapter 2 - Bull Call Spread

Bull Call Spread strategy with examples, graphs and terminology.

Chapter 3 - Bear Call Spread

Bear Call Spread strategy with examples, graphs and terminology.

Chapter 4 - Bear Put Spread

Bear Put Spread strategy with examples, graphs and terminology.

Chapter 5 - Bull Put Spread

Bull Put Spread strategy with examples, graphs and terminology.

Chapter 6 - Conclusion and Review

Review of key points.

Quiz

Test your knowledge.

Course Resources:

Podcasts

OIC222P: LEAPS

OIC341P: Income Strategies Part 1

OIC342P: Income Strategies Part 2

OIC430P: Managing the Product: Strategic Alternatives to Inaction, Part 1

OIC431P: Managing the Product: Strategic Alternatives to Inaction, Part 2

Webcasts

OIC301W: Trading Spreads

OIC302W: Time Spreads

OIC303W: Straddles and Strangles: Comparing and Contrasting These Two Volatility Strategies

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