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Trading Strategies 1
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Understand Bull Call and Bull Put spread
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How to use Bull Call and Bull Put spread strategies to reduce exposure to risk in investing?
Understand Bull Call and Bull Put spread Investing options can be risky, right strategies reduce their exposure to risk. So, let's start by understanding Bull call and Bull put spread. A bull call spread is an options trading strategy that is aimed to let you gain from an index's or stock's limited increase in price. Bull call spread are tailored to investor's risk profile. On the other hand, A bull put spread is an options strategy that an investor uses when they expect a moderate rise in the price of the underlying asset. Here the maximum loss on the strategy is capped and known upfront. It is essential to gauge the mood of the market before committing to this type of spread as it is best applied in certain specific situations. Let's understand in detail the basics of option strategies and how to use them on Smart Money by Angel Broking.