1. Introduction
Backspreads are a versatile options strategy as they allow traders to benefit from significant moves in the underlying asset, particularly when there is an expectation of increased volatility.
2. Understanding Backspreads
A backspread is an advanced options strategy involving the sale of a small number of options and the purchase of a larger...
Let's say the equities market crashes along with commodities, then we would expect gold's price to increase, but maybe Bitcoin will become the new gold due to the nature of the pandemic that we are currently amidst. The key point is this: gold is neither easily transportable, transferrable, nor is it readily portable. It would be impractical to expect be able to...