• 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.