Understanding Bull & Bear Spreads (Free Course by CFI)

The world of options trading offers a variety of strategies to navigate different market conditions. This free course by the Connecting Financial Institute (CFI) delves into bull and bear spreads, two fundamental spread strategies for options traders.

What You'll Discover:

• Options Spreads Fundamentals: Grasp the core concept of options spreads, where you combine the buying and selling of options contracts to achieve specific trading objectives.
• Understanding Bull Spreads: Learn how bull spreads allow you to profit from a potential rise in the underlying asset price with a defined level of risk.
• Types of Bull Spreads: Explore different variations of bull spreads, such as bull calls, diagonal bull spreads, and calendar spreads, each catering to specific market outlooks and risk tolerances.
• Understanding Bear Spreads: Discover how bear spreads enable you to profit from a potential decline in the underlying asset price or hedge against existing holdings.
• Types of Bear Spreads: Explore different variations of bear spreads, such as bear puts, vertical bear spreads, and credit spreads, catering to specific market expectations and risk profiles.
• Risk and Reward in Spreads: Understand the concept of defined risk and limited profit potential inherent in spread strategies.

By the end of this course, you'll be equipped to:

• Explain the basic principles of options spreads and their role in options trading.
• Differentiate between bull and bear spreads and their underlying profit objectives.
• Identify different types of bull and bear spreads with their unique risk and reward characteristics.
• Gain a foundational understanding of how to potentially utilize bull and bear spreads in your options trading strategies.

Expand your options knowledge - for free! learn to Understanding of Bull and Bear Spreads with CFI today!