Options Spread Psychology by Steven P. Schinke, Ph.D
ARTICLE SYNOPSIS ...TRADING PSYCHOLOGY Options Spread Psychology by Steven P. Schinke, Ph.D.
Choosing an options spread strategy depends in part on individual psychology about market conditions. By understanding how emotions affect behavior, traders
can add precision to their options spread positions.
Options spread positions are trades that involve the simultaneous purchase and sale of two or more options to exploit differences in price change between them. By initiating such a position, the trader can forecast how the market will move. Implicit in that forecast is the trader's confidence about the directi...