E and Tom are on their own today, so they set out to bolster E’s portfolio with more trades. Errol is bullish in GLD, but its IV Rank is painfully low. Tom reminds him that he’s free to go long a call spread. Even though tastytraders prefer to sell premium, if the right IV environment is not in place for a short play, you can be flexible and buy a vertical spread instead. To buy a call or put spread:Buy an option 1 or 2 strikes in the moneysell an option 1 or 2 strikes out of the money Your POP (probability of profit) won’t be as high as if you sell premium. In this case, Errol’s GLD trade has a 50/50 shot of losing or winning money. The mechanics of management are the same as with selling spreads!