Vertical Option Spreads
Vertical Option Spreads We have demonstrated that vertical option spreads have intrinsic value, and that we can roughly determine their value by comparing stock price to strike prices. There is another relationship that can help investors determine value. That is the relationship that exists between corresponding vertical option spreads. When […]

Buying a commodities contract in anticipation of price increases is known as ‘going long’. Selling a commodities contract in anticipation of a price decrease is known as ‘going short’. Interaction between hedgers and speculators helps to provide active, liquid and competitive commodities markets.