Options 101: How to Win Big on Toll Brothers (NYSE: TOL) with a Calendar Spread
Last week, I explained how to profit from housing-sector stocks like Home Depot Inc. (NYSE: HD) using a modified option straddle.
Today, we'll look at an alternative options strategy - known as a long-term calendar spread.
This strategy is better suited to stable or trending stocks.
It's particularly appropriate for companies, whose share prices aren't likely to make a major move until the housing recovery picks up more steam.
In this case, I'm talking about a company like the