• Stock and index options can be used in two broad strategies:
To profit from my directional prediction for a stock or index (directional
strategies).
To profit from sideways channeling of a stock or index (nondirectional
strategies).
• Vertical option spreads are formed when I buy one option and then move up or down
one strike and sell that option.
• Vertical spreads are the building blocks for creating multilegged spreads such as
condor and iron condor spreads.
• The condor and iron condor spreads are classic nondirectional strategies.