Spreads: Trade Probabilities, Not Predictions
Option spreads trade away the dream of a huge win for steadier, more likely gains — a neutral-to-positive shift for traders tired of big swings.
- A spread caps how much a trade can make, but it also caps how much it can lose.
- The trade-off is deliberate: give up unlimited upside, get a defined structure instead.
- The same setup works in four directions — long or short, calls or puts — depending on the view.
- Professional traders aim for consistent income and odds tilted their way, not one giant payday on a single trade.
Outlook: Traders who size and structure positions this way should expect smaller wins more often, rather than rare large ones.