Source:  Calendar Spread  (wallstreetmojo.com) A Comprehensive Guide to Calendar Spreads and How to Use Them as a Powerful Trading Strategy Introduction: What is a Calendar Spread and How Does it Work? Calendar spreads are among the most popular options strategies used by traders. They involve buying and selling options of the same underlying asset but with different expiration dates. Traders can use calendar spreads to capitalize on different market conditions, such as when they expect a particular stock to remain range-bound or when they expect a stock to make a big move in either direction. It is also known as a time spread and is used to capitalize on the expected movement of the underlying stock over time. For example, to buy a calendar spread on AAPL stock, one might choose to sell a front month call option and then purchase a back month call option. AAPL's current spot price is $100. If the spot price of AAPL moves up by 2% in the month the options are in-the-money, then t

 (Shutterstock) What is a CFD? CFD stands for Contract for Difference, a type of financial agreement that allows investors to speculate on the price movements of an underlying asset without taking ownership of it. A trader will open a long or short position in the asset, entering into an agreement with the CFD broker to exchange the difference in the price of the asset from when the contract was opened until it is closed. If the price of the asset moves in a favorable direction, the trader will make a profit, and if it moves in an unfavorable direction, the trader will suffer a loss. Should You Trade CFDs? CFD trading has several advantages that make it an attractive option for investors. Firstly, CFDs offer higher leverage than traditional financial vehicles, allowing traders to take significant positions with less capital at risk. Secondly, CFDs offer diversification as commodities, Forex, major stocks, and indexes are all available for trading from the same platform. Thirdly, CFDs

(Shutterstock) The Basics* (If you already understand the basics of options, skip to the next section, "Selling vs Buying" ) What are Call Options? A call option contract gives the owner the right, but not an obligation, to buy 100 shares of a stock at a fixed price, referred to as the "strike price", on or before the expiration date of the option. For example, let's say you bought a September call option with a $10 strike. If the stock price reaches $15 before the expiration date (September 17th, 3rd Friday),  then you would have profited $500 which is $100 for each $1 increase in the underlying stock.  A holder of a call option has several methods available to close the trade. If the option is in profit; they can sell the option at a profit or hold to expiry and exercise the call option and buy the 100 shares at the strike price.  If the option isn't profitable; they can sell the option for a loss before expiration or hold and let the option expire worthle