By simultaneously buying and selling options contracts with different strike prices, the vertical spread strategy helps limit losses and control risk. The purchased options provide potential for protection or profit, while the sold options generate income that offsets the cost of the purchased contracts.
So, how does it demonstrate its advantages compared to other strategies?
Limited loss: In contrast to s...

I can share an example of how I used the vertical spread strategy in options trading to generate profits. Let's say, at a certain point, I had a bullish view on a particular stock, but I also wanted to trade with controlled risk.
I chose the vertical spread strategy, specifically the Credit Vertical Spread. I simultaneously sold a higher strike price call option (referred to as the "far" option) and bought a lower strike price call option (referred to as the "near" option). B...