combining calls and puts in same spreads

October 29th, 2013, 03:03 PM

im new to options trading and theirfore am interested in trading spreads because of their limited risk limited reward however could you combine puts and calls in the same spread to decrease the maximum loss potential because I have noticed that calls are much more expensive than puts this could lead to a greater credit recieved in the spread any advice will be greatly appreciated

October 30th, 2013, 11:57 PM

One spread can be, Debit or Credit spread ( really both are debit in your account)
You can use calls or puts.
In spread you buy one strike and sell the other.
You can open more than one in more complex trading like Iron Condors, in this case one spread is with calls and the other uses Puts.
Also, you can buy or sell, calls and Puts in straddles and strangles ( long or short)
Options mistakes are expensive.
You need to learn the basic, risk graphics and the greeks in details before trading options.
Please forget the idea, this is easy money- No free lunch in trading.

combining calls and puts in same spreads

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combining calls and puts in same spreads