Options Spreads Guide: Bull Spreads, Bear Spreads & Calendar Spreads
Options · 15 min · Published 2026-03-27
Learn options spread strategies for defined-risk trading. Covers vertical, horizontal, and diagonal spreads. Free guide by Rami Alame at Tradyom.
Options spreads involve simultaneously buying and selling options to create defined-risk, defined-reward positions. Vertical spreads (bull call, bear put) are directional. Calendar spreads profit from time decay. Diagonal spreads combine directional bias with time decay. Spreads reduce cost and risk compared to single-leg options.
Frequently Asked Questions
Are options spreads safer than buying options?
Yes, spreads define your maximum loss upfront, and they cost less than single-leg options. However, they also cap your maximum profit. Tradyom teaches spreads as the preferred approach for risk-conscious traders.
What is the best spread for beginners?
Bull call spreads and bear put spreads are the simplest to understand. They have defined risk, clear profit targets, and directional logic. Rami Alame at Tradyom starts options education with these basic spreads.
How do I choose strike prices for spreads?
For debit spreads, buy near-the-money and sell 1-2 strikes away. Wider strikes increase max profit but decrease probability. Delta values help — buy the 0.40-0.50 delta strike and sell the 0.20-0.30 delta strike.