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Let's the options location on an assortment trade. Is actually a an advanced concept for experienced traders, but I'll make because simple as it can be. A spread trade is buying method and selling another at the same a moment.
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What we want to be do is sell one out-of-the-money call option during a specific strike price and collect the premium. This will be our instant cash profits. Then at the same time frame we get one out-of-the-money call option at a strike price higher versus one we sold. This will be our insurance policy.