Spreads can be a smart way to lower costs and help improve probability of profit when looking to add the power of options to your portfolio.
Why Options AI does Spreads
Options can be a powerful tool for investors both as a leveraged alternative to stock and for adding income or protection to a portfolio. But finding the right balance of risk, reward and probability can be a tricky process, for even the most seasoned investor. And, advanced traders know that if you’re not selling options then you're missing half your toolkit - the half that often unlocks the opportunity for higher probability outcomes.
But simply selling options outright can also present undefined risk and therefore unlimited losses. A risky prospect that rightly deters many investors. This is one reason why institutional investors will often simultaneously buy and sell options as part of an options ‘spread’. To optimize for probability while also ensuring that risk is defined. And why we, at Options AI, built an options trading brokerage where spreads are as straightforward as buying a stock. Helping simplify the path to smarter trading for our community of savvy investors.