Options spread

Options spreads are a way to try to make money in the stock market. They involve buying and selling different types of options at the same time. Options are contracts between two parties that allow one party to buy or sell a certain amount of stocks or other financial products at a certain price, at some point in the future. When you buy an option, you have the right but not the obligation to buy or sell the underlying stock or financial product at the specified price.

When you do an options spread, you buy one option and then sell another option of the same underlying stock or other financial product. By doing this, you are hoping to make more money than you put in. If the price of the underlying stock or financial product moves in the direction that you expect, then you may make a profit. If it moves in the opposite direction, then you may end up losing money.

Think of it like two bets that you make at the same time. You bet that one thing is going to happen and you bet that the other thing is not going to happen. That way, no matter which way the price moves, you only have to win one of your bets in order to make money.