In this post I will be explaining Debit Spreads which are a relatively risk free way to make profit. This is especially a good strategy for small accounts. There are two types of debit spreads, Call Debit Spread which is a bullish strategy and Put Debit Spread which is a bearish strategy. Call Debit Spread Let's take a look at a Call Debit Spread I have open on CCIV (Lucid Motors) stock. How did I open this Call Debit Spread ? I opened this spread by buying the $30 Call option and simultaneously selling $30.5 Call option. How much did it cost ? $30 Call option was priced at $3.12 and $30.5 Call option was priced at $2.84. Since I bought $30 Call, I had to debit $312 and similarly I got a credit of $284 for selling $30.5 Call. This resulted in a net debit of $28. I bought a total of 20 contracts which cost me 20*$28 = $560. What about the profit ? You can calculate the profit with the difference between the strike prices of the two call options. In thi...
Fed to keep near zero interest rates till 2023 to boost recovery, forecasting a bullish outlook in the near team.
Jerome Powell gave an update today on the Federal Reserve's position on the interest rates for the foreseeable future. The forecast of near zero rates till 2023 calmed the nerves of investors and led to a sharp drop in the market volatility index VIX (source: yahoo finance ) Tech stocks look to bounce in the coming weeks in light of this news.