Options Trading Tutorial

How can I use the call spread in an option trading?

I just learn option trading and I don't know how to use the call spread. Any ideas? Thanks.

Public Comments

1. First you need to understand there are many different types of call spreads. The simplest is probably a bullish vertical call spread. Here are two examples of one: http://www.cboe.com/Strategies/WeeklyStrategy.aspx?DIR=LCWeeklyStrat&FILE=Oct0207strategy.doc&CreateDate=02.10.2007 http://www.cboe.com/Strategies/WeeklyStrategy.aspx?DIR=LCWeeklyStrat&FILE=Sept2507strategy.doc&CreateDate=25.09.2007 The next simplest is probably a Short Out-of-the-Money Vertical Call Spread. Here is an example of one: http://www.cboe.com/Strategies/WeeklyStrategy.aspx?DIR=LCWeeklyStrat&FILE=Sept1807strategy.doc&CreateDate=18.09.2007 There are any number of other call spreads possible, including calander spreads, butterflies, condors, christmas trees, ratio spreads, backspreads, diagonal spreads, etc. The best way to learn about them, IMHO, is to read a good book about options.