Futures Lookup   Quote Chart Opinion Profile Markets Futures Forex Funds Signals Sectors My Quotes Education Member Sign-In: › Subscriber Login › Member Benefits Markets Overview: › Market Indices › Exchange Funds › Market Momentum › 52 Week Highs › 52 Week Lows › Volume Leaders › Percent Advances › Percent Declines › Price Advances › Price Declines › Price Volume › Volume Advances › Highs / Lows › What's Hot › What's Not  Stock Options  Market Snapshot  Rankings  Commentary  Education  Glossary › IB Times News › Funds › Signals › Sectors Options Education Featured Sponsor:  Vertical Spread Since all markets have the potential to fluctuate beyond their normal trend, it is essential to learn how to use strategies that limit your losses to a manageable amount. There are a variety of options strategies that can be employed to hedge risk and leverage capital. Each strategy has an optimal set of circumstances that trigger its application in a particular market. Vertical spreads are the most basic limited risk strategies and that's why they are often introduced relatively early. These simple hedging strategies enable traders to take advantage of the way options premiums change in relation to movement in the underlying asset. Vertical spreads combine long and short options with different strike prices and the same expiration date to profit on a directional move in the price of the underlying asset. They offer limited potential profits as well as limited risks. One of the keys to understanding these managed risk spreads comes from grasping the concepts of intrinsic value and time value-the two variables that contribute to the fluctuating price of an option. In order to understand these important concepts, let's take a closer look at two bullish vertical spreads. Back to Top    Barchart Marketplace  »» Barchart.com © Copyright 2008, Barchart.com User agreement applies. Data provided by ddfplus and subject to terms of use and privacy policy. |  Webmaster Tools  |  Advertising  |  Suggestions Box  |  About Barchart.com  |  Support  | Press Ctrl+P to print this page   Data and information is provided for informational purposes only, and is not intended for trading purposes. Neither Barchart.com Inc. nor its data provider (ddfplus) shall be liable for any errors or delays in the content, or for any actions taken in reliance thereon. By accessing the Barchart.com Inc. web site, a user agrees not to redistribute the information found therein. Press Ctrl+D to bookmark this page - Set www2.barchart.com as your Home Page All Equities and Futures data is delayed according to exchange rules. NYSE and AMEX at least 20 minutes. Nasdaq at least 15 minutes. CME and CBOT at least 10 minutes. NYBOT, NYMEX and COMEX at least 30 minutes.