Growing Wealth Archives

Mar

2025

What Is Infrastructure Investment?

By Rebecca Lake | Growing Wealth, invest, Investing | Comments Off

Infrastructure investment is an alternative strategy that focuses on the physical structures and systems that keep societies operational. Examples of public infrastructure include: railways, highways, harbors, cell towers, school, and wastewater treatment facilities.

As a type of alternative investment, infrastructure is not correlated with traditional assets like stocks and bonds. As such it may provide portfolio diversification. Infrastructure investments come with specific risks, however.

Examining how infrastructure investments work and their pros and cons can help you determine if they might be right for you.

Key Points

• Infrastructure investments are in the physical structures, facilities, and systems that enable society to run smoothly.

• Examples of infrastructure sectors include transportation, energy, and telecommunications, and projects may include developing highways, wind farms, and fiber-optic cables.

• Infrastructure is considered an alternative asset class. Because it’s typically uncorrelated with traditional markets, it can offer portfolio diversification.

• Investors can access this asset class through municipal bonds, private investments, public-private partnerships, and infrastructure mutual funds or ETFs.

• Because infrastructure is a physical asset, it can be durable and may offer steady yields. Risks include lack of liquidity, potential vulnerability to higher interest rates, regulatory changes, natural disasters, and political events.

Defining Infrastructure Investment

Infrastructure investing refers to investment in the tangible assets that societies rely on to function, from power plants and parking lots to hospitals and schools. It’s an example of an alternative investment, since infrastructure investments are typically not correlated with traditional assets, such as stocks, bonds, and cash, or cash equivalents.

As a strategy, alternative investments offer the potential to generate higher risk-adjusted returns compared with traditional assets, though this typically comes with higher risk. Infrastructure investments are illiquid, and can be subject to interest rate fluctuations, regulatory changes, and risks owing to climate change and extreme weather.

Infrastructure investment funds, infrastructure stocks, and municipal bonds are some of the ways to invest in this alternative asset.

Types of Infrastructure Assets

Infrastructure assets are long-term capital assets that are used to provide public services. They’re most often stationary and typically have a long life or period of usefulness. Examples of infrastructure assets include:

• Roads, bridges, tunnels

• Water, sewer, and drainage systems

• Dams

• Municipal lighting

• Communications networks, cell towers

• Schools

• Healthcare facilities

• Prisons

Infrastructure assets are viewed separately from equipment used to construct critical structures. For example, a new road is an example of an infrastructure asset but the asphalt paving machine used to build it is not.

Public vs. Private Infrastructure Projects

Public infrastructure is available for public use and is funded through public means, such as municipal bonds. When you buy a municipal bond you’re agreeing to let the bond issuer, typically a city or local government, use your money to support public works projects for a certain period. In return, the bond issuer pays you interest, and at the end of the term, you can collect your original investment plus the interest.

Private infrastructure projects use capital from private investors to further the construction or improvement of critical structures. An infrastructure investment fund, for example, may concentrate private equity in a specific sector or subsector.

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Importance of Infrastructure Investment

Infrastructure investment is important for many reasons, starting with its impact on the economy. Without roads, railways, airlines, and waterways, people and goods can’t get where they need to go. Transportation infrastructure facilitates economic growth and reduces disruptions to the supply chain. Investing in utilities, such as electricity and water is also crucial.

Quality of life and basic needs are also dependent on infrastructure. When infrastructure is not maintained, societies risk losing access to safe, clean drinking water, communications, housing, and health care.

Infrastructure investment also serves as a line of defense against cyberattacks, which can threaten the security of everything from banking systems to the electrical grid. In short, investment in infrastructure makes life as we know it possible.

Recommended: Alt Investment Guide

Infrastructure Investment Sectors and Projects

Infrastructure investments can target a specific sector or type of project. Here’s a quick look at different areas of infrastructure investing.

Transportation Infrastructure

Transportation infrastructure refers to structures and systems that allow goods and people to move from one place to another. Examples of transportation infrastructure projects include the building or maintenance of:

• Canals that allow cargo ships to pass from one body of water to another

• Ports which allow cargo ships, cruise ships, and other maritime vehicles to dock for the purpose of loading or unloading people and goods

• Mass transit systems such as subways and buses that allow people to navigate around a large urban area without a car

• Roads, streets, and highways designed for different speeds and levels of capacity

In the U.S., the interstate highway system is one of the largest public works infrastructure projects ever undertaken.

Energy Infrastructure

Energy infrastructure includes all of the systems and structures that are necessary for generating or transmitting energy to a population. Here are some examples of energy infrastructure projects.

• Solar panel systems that provide power for street lamps along a highway

• Large-scale wind turbine farms that generate electric energy for a local population

• Battery energy storage systems that connect to the existing electrical grid

The Hoover Dam is an example of an energy infrastructure project. The dam was built through a combination of public and private funds, as the government focused on improving infrastructure to generate jobs amidst the Great Depression.

Telecommunications Infrastructure

Telecommunications infrastructure, or telecom, encompasses the various systems and structures people and businesses use to communicate. Telecom infrastructure includes:

• Telephone lines

• Fiber-optic cables

• Wireless networks

• Routers

• Cellular phones

Satellites are also an integral part of telecom infrastructure. Global governments and organizations, including NATO, rely on satellites to keep the lines of communication open.

Financing Infrastructure Investments

There are several ways infrastructure investments are financed. Capital may come from public investments and government programs, private investment, or infrastructure funds.

Public Funding and Government Initiatives

Public funding for infrastructure projects most often takes the form of bonds. Investors get the benefit of regular interest payments while the bond issuer is able to get the capital they need to invest in infrastructure.

Bonds are a form of direct investment in infrastructure; taxes are an indirect method. When you pay taxes at the local, state, or federal level, some of that money goes toward funding infrastructure projects. Governments use tax dollars, along with revenue collected from other sources, to build or improve infrastructure.

Private Investment and Public-Private Partnerships

Private investment provides financing for infrastructure projects through individual and institutional investors. When you invest in this type of fund, you may gain exposure to multiple infrastructure classes or just one — it all depends on the fund’s goals and objectives.

Public-private partnerships (PPPs) are arrangements in which private investors and governments work together to support infrastructure projects. PPPs can be used to address a variety of infrastructure needs, from building parks and recreation centers to constructing new roadways.5

Infrastructure Funds and Asset Management

Infrastructure funds allow investors to gain exposure to companies or industries that engage in infrastructure activities. For example, you might invest in a fund that holds companies in the shipping and ports sector or a fund that’s dedicated to investing in utilities.

Investing in infrastructure through mutual funds or exchange-traded funds (ETFs) allows for diversification. You can hold a collection of investments in a single basket, rather than purchasing shares of individual infrastructure stocks.

Infrastructure asset management refers to strategies for managing infrastructure assets. It encompasses key decision-making processes related to the maintenance of infrastructure systems, including risk management and cost management.

Advantages of Investing in Infrastructure

As discussed earlier, because infrastructure is an alternative asset class it’s not correlated with conventional assets like stocks and bonds. Thus, it can provide some portfolio diversification and may help mitigate volatility in other asset classes.

And because infrastructure is generally comprised of long-term physical assets that typically require a high initial investment, these structures tend to be durable. This contributes to lower ongoing investment expenses, and steady yields from population use (i.e., tolls, utility payments, transportation fees).

In that way, infrastructure can also be a resilient investment in the face of other sources of volatility. For example: what happens in the stock market generally won’t impact bridges and tunnels, or the long-term impacts could potentially trickle down in more predictable ways (material costs, interest rate changes) over time.

Risks and Challenges in Infrastructure Investing

Infrastructure investments are exposed to a variety of risks. As an investor, it’s important to understand what those risks can mean for your portfolio.

The most common risks and challenges include:

• Interest rate risk: This is the risk of interest rates rising or falling in a way that could impact bond rates, as well as the cost of loans for construction and development of certain projects.

• Regulatory risk: Because municipal structures depend on local regulations, changes in laws and policies can impact how quickly a project may ramp up, and whether new standards or guidelines will increase costs.

• Construction risk: Construction risk can be a problem if the builder of a project experiences delays, if there are structural impediments that cause significant delays, or if the builder walks away from the contract before the project is complete.

• Event risk: Infrastructure projects can face a wide range of potential threats from outside forces or actors, including the possibility of cyberattacks, supply chain attacks, and data breaches. Natural disasters, a changing climate, and geopolitical upheaval can also prove challenging for maintaining infrastructure.

The Takeaway

Infrastructure investing might be of interest to you if you’re looking for a way to expand your investments beyond stocks and bonds and diversify your portfolio. The most important thing to remember about alternative investments like infrastructure is that they may carry a higher degree of risk. It’s wise to weigh those risks against the potential returns or other benefits before wading in.

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FAQ

What are some examples of infrastructure investments?

Examples of infrastructure investments include municipal bonds that are used to build or improve local roads, public-private partnerships that aim to build more green spaces, and energy sector ETFs.

How can individual investors participate in infrastructure investing?

Infrastructure stocks, mutual funds, ETFs, and municipal bonds may offer the easiest points of entry for investors. You could buy individual shares of stock in an infrastructure company, hold a collection of infrastructure investments in a single fund, or earn interest from muni bonds while helping to fund infrastructure projects.

What are the typical returns on infrastructure investments?

Infrastructure investments can generate returns that may be higher or lower than typical market returns, but it’s important to remember that infrastructure typically does not react to market volatility the same way as conventional assets might. Also some infrastructure investments can offer predictable yields versus other assets.

About the author

Rebecca Lake

Rebecca Lake has been a finance writer for nearly a decade, specializing in personal finance, investing, and small business. She is a contributor at Forbes Advisor, SmartAsset, Investopedia, The Balance, MyBankTracker, MoneyRates and CreditCards.com. Read full bio.

Photo credit: iStock/RyanJLane

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SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

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Tax Information: This article provides general background information only and is not intended to serve as legal or tax advice or as a substitute for legal counsel. You should consult your own attorney and/or tax advisor if you have a question requiring legal or tax advice.

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An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

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Mar

2025

What Is Private Credit?

By Rebecca Lake | Growing Wealth, invest, Investing | Comments Off

Private credit refers to lending from non-bank financial institutions. Also referred to as direct lending, private credit allows borrowers (typically smaller to mid-sized businesses) to seek financing through avenues other than a standard bank loan.

This type of arrangement can remove barriers to funding for businesses while creating opportunities for investors, as a type of alternative investment. Private credit funds allow institutional and individual investors to pool capital that is used to extend loans and generate returns through interest on those loans.

Key Points

• Private credit refers to lending from non-bank financial institutions, providing financing options for businesses outside of traditional bank loans.

• Private credit investments can include senior lending, junior debt, mezzanine debt, distressed credit, and specialty financing, each with different risk levels and repayment priorities.

• Private credit offers potential benefits such as income and return potential, diversification, and supporting business growth.

• However, investing in private credit carries risks, including borrower default, illiquidity, and potential challenges in underwriting and due diligence.

• Retail investors can access private credit through private credit funds, but eligibility criteria, such as being an accredited investor, may apply.

What Are the Different Types of Private Credit?

Private credit investments can adhere to various investment strategies, each offering a different level of risk and rewards. Within a capital structure, certain types of private credit take precedence over others regarding the order in which they’re repaid.

Senior Lending

In a senior lending arrangement, secured loans are made directly to non-publicly traded, middle-market companies. These loans sit at the top of the capital structure or stack and assume priority status for repayment should the borrowing company file for bankruptcy protection.

Senior debt tends to have lower interest rates than other types of private credit arrangements since the loan is secured by business collateral. That means returns may also be lower, but the preferred repayment status reduces credit risk for investors.

Should the borrowing company fail, senior loans would hold an initial claim on the business’s assets. Those may include cash reserves, equipment and property, real estate, and inventory. That significantly reduces the risk of investors losing their entire investment in the event of bankruptcy.

Junior Debt

Junior or subordinated debt is debt that follows behind senior lending obligations in the capital stack. Loans are made directly to businesses with rates that are typically higher than those assigned to senior debt. Junior debt is most often unsecured though lenders can impose second lien requirements on business assets.

Investors may generate stronger returns from junior debt, but the risk is correspondingly higher. Should the borrowing business go bankrupt, junior debts would only be repaid once senior financing obligations have been satisfied.

Mezzanine Debt

Mezzanine debt is a private credit term that’s often used interchangeably with junior debt, but it has a slightly different meaning. In mezzanine lending, the lender may have the option to convert debt to equity if the company defaults on repayment. There may be some collateral offered but lenders also consider current and future cash flows when making credit decisions.

Compared to junior or senior debt, mezzanine debt is riskier but it has the potential to produce higher yields for investors as the interest rates are usually higher. The risk to borrowers is that if the company defaults, they’ll be forced to give up an ownership share in the business.

Distressed Credit

Distressed credit is extended to companies that are experiencing financial or operational stress and may be unable to obtain financing elsewhere. The obvious benefit to investors is the possibility of earning much higher returns since this type of private credit generally carries higher rates. However, that’s balanced by a greater degree of risk.

Risk may be mitigated if the company can effectively utilize private credit capital to restructure and stabilize cash flow. Should the company eventually file for bankruptcy protection, distressed debt investors would take precedence over equity holders for repayment.

Special Financing

Specialty financing refers to lending that serves a specific purpose and doesn’t fit within the confines of traditional bank lending. This type of private credit is also referred to as asset-based financing since lending arrangements typically involve the acquisition of an asset that is used as collateral for the loan.

Equipment financing is one example. Say that a construction business needs to purchase a new backhoe. They could get an equipment loan to buy what they need, using the backhoe they’re purchasing to secure it.

💡 Quick Tip: While investing directly in alternative assets often requires high minimum amounts, investing in alt funds through a mutual fund or ETF generally involves a low minimum requirement, making them accessible to retail investors.

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now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

Potential Benefits of Investing in Private Credit

Private credit investing can be an attractive option for investors who are interested in diversifying their portfolios with alternative investments. Here are some of the primary reasons to consider private credit as an asset class.

Income Potential

Private credit can provide investors with current income if they’re collecting interest payments and fees on an ongoing basis. The more private credit investments someone holds in their portfolio, the more opportunities they have to generate regular cash flow.

Return Potential

Investing in private credit may deliver returns at a level well above what you might get with a standard portfolio of stocks, bonds, and mutual funds. The nature of private credit is such that borrowers may expect to pay higher interest rates than they would for a traditional bank loan. That, in part, is a trade-off since private credit offers lower levels of liquidity than other investments.

Investors benefit as long as borrowers repay their debt obligations on time. The exact return profile of any private credit investment depends on the interest rate the lender requires the borrower to pay, which can directly correspond to their risk profile and where the debt is situated in the capital stack.

Diversification

Like other alternative investments, private credit can introduce a new dimension into a portfolio, allowing for greater diversification of that portfolio. Private credit tends to have a lower correlation with market movements than stocks or bonds, which may help insulate investors against market volatility, to a degree.

Additionally, investors have an opportunity to diversify within the private credit segment of their portfolios. For example, an investor may choose to invest in a mix of senior lending, mezzanine debt, and specialty financing to spread out risk and generate varying levels of returns.

What Are the Risks of Investing in Private Credit?

Like any other investment, private credit can present certain risks to investors. Weighing those risks against the potential upsides can help determine whether private credit is the right investment for you.

Borrower Default

Perhaps the most significant risk factor associated with private credit investments is borrower default. Should the borrower fail to repay their debt obligations, that can put the value of your investment in question. In a worst-case scenario, you may be forced to wait out the resolution of a bankruptcy filing to determine how much of your investment you’ll be able to recover.

Again, it’s important to remember that borrowers who seek private credit may have been turned down for traditional bank financing elsewhere. So, your credit risk has already increased. If you have a lower risk tolerance overall, private credit may not be the best fit for your portfolio.

Illiquidity

Private credit investments are less liquid than other types of investments since they operate on a fixed term. It can be difficult to exit these investments ahead of schedule without facing the possibility of a sizable loss if you’re forced to sell at a discount.

In that sense, private credit investments are similar to bonds which also lock investors in for a preset period. For that reason, it’s important to consider what type of time frame you’re looking for when making these investments.

Recommended: Short-Term vs Long-Term Investments

Underwriting

While banks often have strict underwriting requirements that borrowers are expected to meet, private credit allows for more flexibility. Lenders can decide who to extend credit to, what collateral to require if any, and what terms a borrower must agree to as a condition of getting a loan.

That’s good for borrowers who may have run into trouble getting loans elsewhere, but it ups the risk level for investors. If you’re investing in private credit funds that are less transparent when it comes to sharing their underwriting processes or detailed information about the borrower, that can make it more difficult to make an informed decision about your investments.

Ways to Invest in Private Credit

Private credit has traditionally been the domain of institutional investors, though retail investors may be able to unlock opportunities through private credit funds.

These funds allow investors to pool their capital together to make investments in private credit, similar to the way a traditional mutual fund or hedge fund might work. You’ll need to find an investment company or bank that offers access to private credit investments, including private credit funds, funds if you’re interested in adding them to your portfolio.

One caveat is that private credit investments may only be open to selected retail investors, specifically, those who meet the SEC’s definition of an accredited investor, who is someone that fits the following criteria:

• Has a net worth of $1 million or more, excluding their primary residence

• Reported income over $200,000 individually or $300,000 with a spouse or partner for the previous two years and expects to have income at the same level or higher going forward

Investment professionals who hold a Series 7, Series 65, or Series 82 securities license also qualify as accredited.

💡 Quick Tip: How to manage potential risk factors in a self-directed investment account? Doing your research and employing strategies like dollar-cost averaging and diversification may help mitigate financial risk when trading stocks.

Who Should Invest in Private Credit?

Given its risk profile, private credit may not be an appropriate investment choice for everyone. In terms of who might consider private credit investments, the list can include people who:

• Are interested in diversifying their portfolios with alternative investments.

• Can comfortably assume a higher level of risk for an opportunity to generate higher returns.

• Understand the time commitment and the risks involved.

• Would like to support business growth through their investments.

• Meet the requirements for a private credit investment (i.e., accredited status, minimum buy-in, etc.)

Private credit investments may be less suitable for someone who’s hoping to create some quick returns or is more risk-averse.

How Does Private Credit Fit in Your Portfolio?

If you’re able to invest in private credit, it’s important to consider how much of your portfolio you’d like to allocate to it. While you might be tempted to devote a larger share of your investment dollars to private credit, it’s wise to consider how doing so might affect your overall risk exposure.

Choosing a smaller allocation initially can allow you to test the waters and determine whether private credit investments make sense for you. That can also minimize the amount of risk you’re taking on as you explore new territory with your investments.

When evaluating private credit funds, it’s helpful to consider the fund manager’s track record and preferred investment strategy. A more aggressive strategy may yield better returns but it may mean accepting more risk, which you might be uncomfortable with. Also, take a look at what you might pay in management fees as those can directly impact your net return on investment.

The Takeaway

Private credit is a form of financing sought outside of traditional bank loans. For investors, it may be classified as an alternative investment, and it has its pros and cons in an investor’s portfolio.

Private credit can benefit investors and businesses alike, though in different ways. If you’re an accredited investor, you may consider private credit along with other alternative investments to round out your portfolio. Evaluating the risks and the expected rewards from private credit investing can help you decide if it’s worth exploring further.

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FAQ

Is Investing in Private Credit Worth It?

Investing in private credit could be worth it if you’re comfortable with the degree of risk that’s involved and the expected holding period of your investments. Private credit investing can deliver above-average returns while allowing you to diversify beyond stocks and bonds with an alternative asset class.

What’s the Difference Between Private Credit and Public Credit?

Public credit refers to debt that is issued or traded in public markets. Corporate bonds and municipal bonds are two examples of public credit. Private credit, on the other hand, originates with private, non-bank lenders and is extended to privately-owned businesses.

Why is Private Credit Popular?

Private credit is popular among businesses that need financing because it can offer fewer barriers to entry than traditional bank lending. Among investors, private credit has gained attention because of its return potential and its use as a diversification tool.

What Is the Average Return on Private Credit?

Returns on private credit investments can vary based on the nature of the loan agreement. When considering private credit investments it’s important to remember that the higher the return potential, the greater the risk you may be taking on.

Is Private Credit a Loan?

Private credit arrangements are loans made between a non-bank entity and a privately owned business. These types of loans allow companies to raise the capital they need without having to meet the requirements that traditional bank lenders set for loans.

About the author

Rebecca Lake

Photo credit: iStock/Adene Sanchez

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

SoFi Invest is a trade name used by SoFi Wealth LLC and SoFi Securities LLC offering investment products and services. Robo investing and advisory services are provided by SoFi Wealth LLC, an SEC-registered investment adviser. Brokerage and self-directed investing products offered through SoFi Securities LLC, Member FINRA/SIPC.

For disclosures on SoFi Invest platforms visit SoFi.com/legal. For a full listing of the fees associated with Sofi Invest please view our fee schedule.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

Investment Risk: Diversification can help reduce some investment risk. It cannot guarantee profit, or fully protect in a down market.

An investor should consider the investment objectives, risks, charges, and expenses of the Fund carefully before investing. This and other important information are contained in the Fund’s prospectus. For a current prospectus, please click the Prospectus link on the Fund’s respective page. The prospectus should be read carefully prior to investing.
Alternative investments, including funds that invest in alternative investments, are risky and may not be suitable for all investors. Alternative investments often employ leveraging and other speculative practices that increase an investor's risk of loss to include complete loss of investment, often charge high fees, and can be highly illiquid and volatile. Alternative investments may lack diversification, involve complex tax structures and have delays in reporting important tax information. Registered and unregistered alternative investments are not subject to the same regulatory requirements as mutual funds.
Please note that Interval Funds are illiquid instruments, hence the ability to trade on your timeline may be restricted. Investors should review the fee schedule for Interval Funds via the prospectus.

¹Probability of Member receiving $1,000 is a probability of 0.026%; If you don’t make a selection in 45 days, you’ll no longer qualify for the promo. Customer must fund their account with a minimum of $50.00 to qualify. Probability percentage is subject to decrease. See full terms and conditions.
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Mar

2025

What Are Calendar Spreads and How Do They Work?

By Mike Zaccardi, CMT, CFA | Growing Wealth, invest, Investing | Comments Off

Editor's Note: Options are not suitable for all investors. Options involve risks, including substantial risk of loss and the possibility an investor may lose the entire amount invested in a short period of time. Please see the Characteristics and Risks of Standardized Options.

Many options spread strategies consist of buying and selling call or put options that expire at the same time. Calendar spreads, on the other hand, involve buying and selling call or put options on the same underlying asset with different expiration dates. A calendar spread typically includes selling a near-dated option and buying a longer-dated (or longer maturity) option with the same strike price.

Rather than seeking favorable directional movement in the underlying stock, the calendar spread takes advantage of implied volatility and the way that it typically changes over time.

Like other option spread strategies, a calendar spread limits a trader’s potential losses, but it also caps their potential return. Calendar spreads are considered an advanced option trading strategy, so it’s important to have a handle on how they work and the potential risks.

Key Points

• Calendar spreads attempt to capitalize on implied volatility changes over time.

• After the near-term option expires, shifts in implied volatility can significantly impact the profitability of the remaining long-dated position.

• A rise in implied volatility benefits the long-dated option position.

• Implied volatility changes can affect the breakeven calculation.

• A calendar spread involves selling a near-term option and buying a longer-term option with the same strike price but different expiration dates.

Calendar Spreads Defined

A calendar spread, also known as a horizontal spread, is an options trading strategy that is created by simultaneously taking a long and short position on the same underlying asset and strike price, but with different expiration dates. Calendar spreads can consist of either calls or puts. Typically, the long-dated option is purchased (the long leg), and the nearer-dated option is sold (the short leg).

How Calendar Spreads Work

Calendar spreads are typically established for a net debit, meaning you pay at the outset of the trade. Generally speaking, a longer-dated option will be more expensive than a shorter-dated one if the strike prices are the same, given there is more time for the underlying asset’s value to move up or down. This reflects the effect of time decay, which is the decline in an option contract’s value as it approaches its expiration date.

Time decay is essential to how calendar spreads work. It tends to accelerate as an option’s expiration approaches, meaning the value of the near-dated short option in a calendar spread could lose value more quickly than the long option that has more time until expiration.

A calendar spread is best positioned for profitability when the stock price remains near the options’ strike price at the time of the short-term expiration date, as the short option will have declined in value or expired out of the money, while the long option retains potential gains. Calendar spreads function fairly similarly whether constructed with calls or puts. Depending on where the stock price is relative to the strike price selected at the outset of the trade, and whether calls or puts are used, a calendar spread can be neutral, slightly bearish, or slightly bullish.

Maximum Profit on Calendar Spread

A calendar spread strategy reaches its maximum profit when the stock price settles at the near-term strike price by that option’s expiration, which applies to the common approach of selling a near-term option and buying a longer-term option. This is not the end of the trade, however. The trader may also benefit if stock price rises after the near-dated option’s expiration, since they still have a long position with the later-date call option.

A rise in implied volatility after the short-term option expires can also benefit the longer-term option position. Some traders might choose to close the long option position when the near-dated option expires.

Maximum Loss on Calendar Spread

A calendar spread is typically considered a debit spread since the cost of the later-dated option is greater than the potential proceeds from the near-date option’s sale. Thus, the trader can not lose more than the premium paid.

Break-even Point

The precise break-even calculation on a calendar spread option trade cannot be determined due to the two different option delivery dates. Changing option Greeks – such as implied volatility levels and market interest rates — complicate the calculation of an exact break-even price.

Traders must estimate what the value of the long-dated option contract will be on the near-dated option’s expiry. One way to do this is by using an online option strategy profit and loss calculator to estimate a break-even price.

Calendar Spread Example

Suppose a trader holds a stock that they believe will not change much in value during the next month. The trader sells a call option expiring in one month, and buys a call at the same price that expires in two months at a slightly higher premium, which is more expensive because it has more time value than the near-dated call.

During the next month, the stock fluctuates after the trade was executed, but settles back to its strike price by the afternoon of the short-term option’s delivery date. Since time has passed and the stock has not drifted from its original value, the near-dated short call option has lost considerable time value, and may expire worthless. The later-dated call is now worth slightly more.

Calendar Spread Payoff Diagram

Calendar Spread Risks

There are several risks that traders must keep in mind when using calendar spreads.

Limited Upside

The risk and profit potential of a calendar spread depend on whether the strategy is a long or short calendar spread.

A long calendar spread, where the trader buys a longer-dated option and sells a near-term option, has a capped profit potential if the trade is closed at the expiration of the near-dated option. Option traders benefit from time decay in this case, as well as increases in implied volatility. When the short option expires or is brought to a close, there is unlimited upside with the remaining long call, assuming it is held beyond the near-term option’s expiration date.

A short calendar spread, where the trader buys a near-term option and sells a longer-dated option, has theoretically unlimited risk if the underlying stock moves significantly. Because the short position is in the longer-dated option, potential losses can exceed the initial premium collected.

If the trader uses puts, the risk dynamics remain similar, but the profit potential and exposure depend on whether the put calendar spread is long or short.

Delivery Dates

Traders must make a choice when the near-dated option is close to expiring. The trader can let it expire if the position is out of the money. If it is in-the-money, it might be worthwhile for the trader to buy and close the option or consider the potential impact on the remaining position.

Timing the Trade

Being correct about the near-term direction of the stock, as well as changes in implied volatility and time decay, can be challenging. Successfully timing the trade requires accurate predictions of both short-term price movements and also changes in volatility, which can be unpredictable and carry inherent risk.

Types of Calendar Spreads

There are several types of calendar spreads. Here’s a look at some of the most popular strategies.

Put Calendar Spread

A calendar put spread option is a strategy in which a trader sells a near-dated put and buys a longer-dated put. A trader would put this trade on when they are neutral to bearish on the price change of the underlying stock in the near-term. Once again, this type of calendar spread options strategy aims to benefit from time decay or higher implied volatility.

Call Calendar Spread

A calendar call spread involves shorting a near-term call and buying a longer-dated call at the same strike. (This is the strategy outlined in the earlier example.) The near-term outlook on the underlying stock is neutral to slightly bearish while the trader might have a longer-term bullish view.

Diagonal Calendar Spread

A diagonal calendar spread uses different strike prices for the two options positions. This strategy still uses two options — either two calls or two puts — with different expiration dates. This strategy can be either bullish or bearish depending on how the trade is constructed. The term diagonal spread simply refers to the use of both a calendar spread (horizontal) and a vertical spread.

Short Calendar Spread

Traders can use a short calendar spread with either calls or puts. It is considered a “short” calendar spread options strategy because the trader buys the near-dated option while selling the longer-dated option. This is the opposite of a long calendar spread. A short calendar spread profits from a large move in the underlying stock, but carries the risk of substantial loss if volatility increases. However, because both legs are options, a long calendar spread has a limited maximum loss, while a short call calendar spread carries theoretically unlimited risk.

The Bottom Line

Calendar spreads are useful for options traders who want to profit from changes in stock variables other than price direction. They’re an advanced strategy, however, that may not make sense for beginner investors.

SoFi’s options trading platform offers qualified investors the flexibility to pursue income generation, manage risk, and use advanced trading strategies. Investors may buy put and call options or sell covered calls and cash-secured puts to speculate on the price movements of stocks, all through a simple, intuitive interface.

With SoFi Invest® online options trading, there are no contract fees and no commissions. Plus, SoFi offers educational support — including in-app coaching resources, real-time pricing, and other tools to help you make informed decisions, based on your tolerance for risk.

Explore SoFi’s user-friendly options trading platform.

FAQ

Is a calendar spread bullish or bearish?

Calendar spreads can be neutral, slightly bullish, or slightly bearish depending on the trader’s outlook. An options trader may construct the spread using puts or calls and a specific strike price that aligns with their view of market conditions.This depends on the way the spread is set up as well as the trader’s outlook. The primary objective is to benefit from changes in time decay and implied volatility changes, rather than a significant price move in the underlying asset.

Are calendar spreads good to use?

Calendar spreads can be a useful strategy for traders who are trying to benefit from volatility or time decay, rather than directional price movement. As with any options strategy, they come with risks, including the potential for limited profits and the complexity of managing both the short- and long-dated positions. Calendar spreads are generally considered an advanced strategy, so they may not be suitable for all investors.

Should you let a calendar spread expire?

Whether to let a calendar spread expire depends on the position of the trade as it nears expiration. If the short-term option expires out of the money, the trader may allow it to expire and keep the longer-term option open. However, if the short-term option expires in the money, it might be worth closing both positions or rolling the trade to adjust the strategy. The decision should align with the trader’s market outlook and risk tolerance.

Photo credit: iStock/Tatomm

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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Mar

2025

Investment and Financial Brokers Explained

By Michael Flannelly | Growing Wealth, invest, Investing, Terminology | Comments Off

A number of investors trade stocks and bonds through an investment broker. What is a broker? A broker, or brokerage firm, is the middleman between the buyer and seller and can help make a transaction go smoothly. But an investment broker is not strictly necessary. Some companies offer a direct stock plan, allowing investors to purchase shares straight from the company without a broker.

In order to decide if you need an investment broker, it’s essential to know how a broker works, what exactly they do, and how to shop around for one that fits your needs.

Key Points

• Investment brokers assist with buying and selling securities, ensuring transactions are legitimate and handling necessary documentation.

• Brokers include full-service, discount, online, and robo-advisors, each with unique features.

• Using a broker provides accessibility and expertise but involves fees and potential conflicts of interest.

• Investment accounts vary, including taxable brokerage, retirement, and college savings plans.

• Choosing a broker requires comparing fees, account minimums, and the level of guidance offered.

What Is an Investment Broker?

Investment brokers enable individuals to buy and sell financial securities, like stocks or bonds, on an exchange market. It’s really as simple as that. Though brokers do have several varying roles and responsibilities, and can offer a number of services to their clients.

Roles and Responsibilities

Reputable brokers act as a boon to both buyers and sellers: They ensure that each party actually has the money to buy assets or the assets to sell.

Brokers settle trades by delivering securities and payments to each party, while also taking care of all the bookkeeping and tax-related documentation required. In many cases, going through a brokerage firm may be the easiest and most accessible way for individuals to get started with investing.

Types of Brokerage Accounts

There are many kinds of brokerage accounts to choose from. For instance, you may want to choose between a brokerage account vs. a cash management account, both of which are offered by brokerages.

The best product or service for you will depend on your individual financial goals and your budget. Here’s what you need to know to help make an informed decision.

Full-service Brokers

Along with the ability to buy and sell assets, a full-service brokerage account might also include advice from human financial planners and portfolio management to help you make the best investment decisions possible.

However, these perks often don’t come cheap. Full-service brokerage accounts and wealth-management companies usually calculate their charges as a percentage of your total portfolio, and may have account minimums as high as $250,000. They may also collect trade commissions and annual management fees.

Discount Brokerages

Discount brokers offer less consultation and guidance, allowing you to DIY your investment portfolio cheaply. Many have $0 account minimums and may charge less than $10 per trade, or even offer commission-free assets trading.

Both full-service and discount brokerages typically offer both cash and margin accounts. In a cash account, you’ll need the actual cash to buy your assets. In contrast, in a margin account, the broker will lend you some capital to make purchases, using the securities you already own as collateral.

Online Brokers

Many investors today are likely familiar with online brokerages, as there are numerous platforms that allow users to buy and sell stocks or other securities. Many of them don’t charge commissions, either. Online brokers often offer the ability to buy or sell securities, and in some cases, trade derivatives, too.

Robo-Advisors

Robo-advisors aren’t really “brokerages” per se, but more of a service that may be provided by brokers. They’re effectively highly sophisticated robot brokers — they may conduct trades automatically for users or clients, rebalancing their portfolios or allocating their money based on the investor’s risk tolerance and other factors. Some brokerages offer robo-advisory services, and some do not. In some cases, there may be humans in the mix that help with portfolio curation, but it may be a good idea to explore the specifics depending on which broker you’re thinking of using to make sure.

Pros and Cons of Using an Investment Broker

As with any financial service, there are both benefits and drawbacks to using a brokerage firm to facilitate your trades.

Pros of Using a Broker

Some of the pros of using a broker include accessibility, simplicity, and expertise.

Accessibility

Thanks to the internet, you can open a brokerage account in minutes and start trading stocks as soon as your account is funded. That means employing a financial broker is one of the easiest ways to start an investment journey as quickly as possible.

Simplicity

When you buy and sell through a broker, a lot of the tedious footwork — like keeping tabs on your interest earnings for tax purposes — is taken care of for you. Depending on the type of brokerage firm you go with, you may also have access to professional financial advice and other advisory services that could help you make the most of your portfolio.

Expertise and Guidance

Brokers are professionals, and have experience in the market. That is, they may be able to offer a helping hand at times, which may be worthwhile to new or beginning investors who are still getting their sea legs.

Cons of Using a Broker

There can also be drawbacks to using a broker, such as fees and required minimums.

Fees and Commissions

Although they’ll vary based on the specifics you choose and the type of account you open, some brokers charge maintenance fees and trade fees — also known as commissions — which can eat away at your nest egg. In fact, the average stock broker commission charged by brokerage firms is usually 1% to 2% of the value of the total transaction.

That said, you can minimize your investment fees, or even eliminate them, by shopping around for brokers with the lowest costs. For example, many online brokers offer no commission trading.

Required Portfolio Minimums

Although it’s not true of every brokerage firm, some require you to keep a minimum amount of money in your account to use their services. These minimums might be $1,000 or more, which can be a barrier to entry for some beginner investors.

Potential Conflicts of Interest

It’s possible that a broker may have conflicts of interest, in that they may be a part of a broad organization or large company that has many clients. As such, they could have an interest in having investors invest in certain companies, assets, or more — and it may not even be intentional. The point is, it’s possible that these conflicts could exist, and investors should be aware of them.

How to Choose the Right Investment Broker

There’s no one way to choose the right investment broker, as it’ll largely depend on your specific needs and financial situation. That said, you can keep some general guidelines in mind when making a choice. That can include:

• What your needs are (what are you looking to trade, specifically?)

• What your financial goals are

• Any fees or commissions that the broker may charge

• Which specific products and services the broker offers

• How easy they are to work with

• How much guidance you want or need as an investor.

Different Types of Investment Accounts

Aside from deciding what type of brokerage you’d like to do business with (and how much you’re willing to pay for financial services), you’ll also need to decide what type of investment account works best for your goals.

Maybe you’re investing for a shorter-term objective, like purchasing a house, or perhaps you’re trying to ensure you’ll have a comfortable retirement. Either way, specific investment account types, or “vehicles,” are designed to help you get there.

Taxable Brokerage Account

Think of this as a default investment vehicle. It may be a good choice if you’re looking to grow wealth and want to be able to add or withdraw funds on your own terms without waiting to reach a certain age or life circumstance. However, you pay taxes on earnings, so there are no tax advantages to this type of account. If you don’t make any specific investment vehicle choices when you open your brokerage account, this is most likely the one you’re getting.

Individual Retirement Account (IRA)

An individual retirement account, or IRA, is a type of investment account designed specifically for retirement goals and is available to self-employed people and those working for a company. IRAs carry specific tax incentives; for example, contributions to traditional IRAs are deductible. While Roth IRAs allow for tax-free distributions. However, you can’t access the funds without paying a penalty until you reach age 59 ½ or meet certain circumstantial requirements, such as purchasing your first home.

Roth IRA

Roth IRAs are similar to traditional IRAs, with the key difference being that contributions are made with after-tax dollars, meaning that the money in them can be withdrawn tax-free. As such, there may be some advantages for investors to use a Roth IRA versus a traditional IRA, though it may be best to confer with a financial professional to get a sense of which may be a better investment vehicle given your situation.

401(k) Accounts

There are also 401(k) accounts, which are employer-sponsored retirement plans that are similar to IRAs, in some ways. Employees can contribute a portion of their paychecks to a 401(k), and some employers will even match their contributions up to a certain percentage. There may be tax advantages, too.

Regulations for Investment Brokers

Investment brokers need to abide by some rules, most notably, those set forth by regulators like the Securities and Exchange Commission (SEC), and FINRA.

FINRA and SEC Oversight

Investment brokers are regulated by the Financial Industry Regulatory Authority (FINRA). Brokers must register with FINRA, and they are required to follow a standard of conduct known as the suitability rule. Under this rule, brokers need to have suitable grounds for recommending particular investments to clients.
Brokers also need to register with the SEC, which oversees regulatory efforts for the industry.

Fiduciary Responsibility

Brokers also have a fiduciary responsibility, which means they are required to act in their client’s best interest. So, if a broker can talk a client into buying a bunch of assets, which may be to their detriment, while raking in commission fees, they could find themselves in trouble.

Alternatives to Investing With a Broker

Although using a broker to invest in the stock market might be a smart money move for some, there are other ways to get started with investing, including the following options.

Recommended: Buying Stocks Without a Broker

Automated Investing

Automated investment products, or robo-advisors, are platforms that utilize a combination of computer algorithms and human financial planners to create and manage diversified portfolios at low costs to users.

Your funds will be invested in a diversified portfolio, and the platform typically offers goal-planning tools and rebalancing services to help keep your funds moving in the right direction.

If you don’t want to pay the high prices for a full-service broker, but self-managing your portfolio makes you more than a little nervous, a robo-advisor may be right for you.

Buying Stocks and Fractional Shares Directly

Depending on whose stocks you’re interested in purchasing, you may be able to buy them directly from the issuer without needing to go through a brokerage firm.

It pays to read the fine print, however: Buying stocks directly may save you money on trade commissions, but you may also be subject to proprietary fees from the company or minimum purchase amounts. And if you’re buying fractional shares (fractions of shares of stock), you need to have an investment account, such as one with an online broker or robo-adviser.

Diversifying your assets can still be helpful for investors who buy stocks directly. If all of your investments are tied up in a single company, you may not be in a great position if that company begins to falter. In contrast, if you’ve invested in several different firms and other asset classes, you will likely have a wider margin for error.

Choosing Alternative Investments

Although the stock market is one of the most popular ways to invest, there are plenty of other ways to try turning your money into more money.

You might consider exploring alternative investments. For example, you could invest in real estate and sell the property at a profit or turn a condo into a passive income source by putting it up for rent. Or you might invest in art; the value of paintings is not necessarily correlated with the behavior of the stock market, giving it the potential to rise even during a stock market crash.

That said, many alternative investments require significantly more time, work, and know-how than crafting a diversified portfolio of stock market assets. And as always, every investment involves risk. There’s no such thing as a sure thing.

Direct Stock Purchase Plans (DSPPs)

Further, investors can check out whether they can participate in a direct stock purchase plan, or DSPP, which allows investors to buy stock directly from the stock-issuing entity. This way, investors don’t need to deal with a broker at all, they can go directly to the source and purchase stock.

The Future of Investment Brokerage

What does the future hold for investment brokers? Nobody knows for sure, but it’s likely that the entire field will evolve in the coming years, as much of the financial space has. Technology keeps evolving and rapidly changing, and the introduction of artificial intelligence and perhaps, in the future, quantum computing capabilities, may give investors new abilities that were unimaginable a few years ago.

We’re not sure exactly what that will look like, but it’s likely a safe bet that the field will continue to see rapid change

The Takeaway

If you’ve decided stock market investments are the right move for you and your money, going through a broker can be a relatively simple and low-cost way to gain access to the market. However, if you’d rather avoid potential downsides, like fees or required account minimums, you may want to consider the option to invest directly. The choice is yours.

Invest with as little as $5 with a SoFi Active Investing account.

FAQ

What is the role of a stock broker?

A stock broker is a financial professional who buys and sells stocks on behalf of clients. A broker generally earns a fee or commission for their services.

How do brokers make money?

Brokers typically work on commission. The average stock broker commission is usually 1% to 2% of the value of the total transaction.

Why do people use brokers?

People use brokers to help them buy and sell stocks and bonds. For many individuals, using a broker is the easiest way to start investing.

How much money do I need to start investing with a broker?

How much you need to start investing with a broker depends on the specific broker or brokerage. Some may not have minimum amounts, while others may have relatively large or high balance requirements.

Are online brokers safe to use?

While there’s no guarantees in the financial world, and there’s certainly nothing that’s “safe,” most brokers are relatively low-risk, so long as they abide by regulatory standards and are registered with the proper authorities. That said, it may be a good idea to do some research before signing up.

Can I switch brokers easily if I’m not satisfied?

Yes, you can open up new or different brokerage accounts with other brokers.

Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.

Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

Mar

2025

Stock Market Quiz

By Rebecca Lake | Growing Wealth, Investing | Comments Off

The stock market consists of exchanges, such as the New York Stock exchange and the Nasdaq, where stocks of publicly held companies are bought and sold. But how much do you really know about the stock market? Taking a stock market quiz is a good way to find out.

If you’re interested in investing in stocks, it’s important to understand how the stock market works. For example, do you know the difference between a stock vs. bond? Are you familiar with mutual funds? How about volatility?

Learning your stock market I.Q. can be helpful as you decide how to invest. Investing in the stock market could potentially help you grow your money to reach your financial goals, such as buying a home or saving for retirement. However, there is risk involved with buying and owning stocks, and some stocks are riskier than others.

Taking this stock market quiz is a great way to test your knowledge. It can help you discover how much you know and show you what you still need to learn when it comes to investing.

Ready to take the stock market quiz? Go ahead and get started.

You’ve Got a High Stock Market I.Q.

Based on your answers to the stock market quiz, you have a keen understanding of stocks and how the stock market works. You’re also aware of the risks that come with stocks, and you have a sense of how much risk you can tolerate.

Keep up the good work. That means doing your homework before you make new investments to make sure they’re the right vehicles for you. Also, evaluate your portfolio every few months, or at least once a year, to help ascertain that you have the right mix of assets. If not, consider reallocating some of your assets and rebalancing your portfolio.

And finally, as you get closer to life milestones, such as retirement, consider making your portfolio more conservative and less aggressive, since you may need to live off the funds from your investments sooner than later and don’t want to risk your money.

You Know More Than the Basics

Your quiz answers indicate that you’ve done some investing and you’ve gained fundamental knowledge about the stock market and assets like stocks, bonds, and exchange-traded funds (ETFs). To keep learning more, which could help you when you’re making investment decisions:

• Research any type of investment you’re not familiar with, such as real estate investment trusts (REITs), before seriously considering them. Weigh the pros and cons of any potential investment to make sure it’s right for you and that you understand the risks involved.

• Learn about balancing and diversifying your portfolio and how it may help you to spread your investments across a range of assets.

• Make sure you’ve got the proper investment strategy in place for your future, especially when it comes to planning for retirement. For instance, you might want to consider opening an IRA if you don’t have one.

You’re Still Learning About the Stock Market

You’re a new investor, and according to your stock market quiz answers, you’ve got a lot to learn about the basics of investing. But you’re motivated: You want to grow your money for the future, and you’re eager to learn about how investing might help you.

One way to start is by determining your financial goals. For example, in the not-too-distant future, you might want to start a family or renovate your house. At the same time, you may want to plan for longer-term goals as well, such as your child’s education and your own retirement.

In addition, you can learn investment terminology so that you become better versed in such important factors as asset allocation and volatility. You can also study up on specific investments, such as how to buy stocks and how to know when to sell them.

And importantly, you’ll want to learn about investment risk so that you can make investment decisions that are suited to your risk tolerance.

The Takeaway

A stock market quiz can reveal how much you know about the way the market works and your understanding of different assets, such as stocks, bonds, and exchange-traded funds. It can even help pinpoint fundamentals that you may need to learn more about to make investment decisions that could help you reach your financial goals.

Invest with as little as $5 with a SoFi Active Investing account.

About the author

Rebecca Lake

INVESTMENTS ARE NOT FDIC INSURED • ARE NOT BANK GUARANTEED • MAY LOSE VALUE

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What Is Infrastructure Investment?

Defining Infrastructure Investment

Types of Infrastructure Assets

Public vs. Private Infrastructure Projects

Alternative investments, now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

Importance of Infrastructure Investment

Infrastructure Investment Sectors and Projects

Transportation Infrastructure

Energy Infrastructure

Telecommunications Infrastructure

Financing Infrastructure Investments

Public Funding and Government Initiatives

Private Investment and Public-Private Partnerships

Infrastructure Funds and Asset Management

Advantages of Investing in Infrastructure

Risks and Challenges in Infrastructure Investing

The Takeaway

FAQ

What are some examples of infrastructure investments?

How can individual investors participate in infrastructure investing?

What are the typical returns on infrastructure investments?

What Is Private Credit?

What Are the Different Types of Private Credit?

Senior Lending

Junior Debt

Mezzanine Debt

Distressed Credit

Special Financing

Alternative investments, now for the rest of us.

Explore trading funds that include commodities, private credit, real estate, venture capital, and more.

Potential Benefits of Investing in Private Credit

Income Potential

Return Potential

Diversification

What Are the Risks of Investing in Private Credit?

Borrower Default

Illiquidity

Underwriting

Ways to Invest in Private Credit

Who Should Invest in Private Credit?

How Does Private Credit Fit in Your Portfolio?

The Takeaway

FAQ

Is Investing in Private Credit Worth It?

What’s the Difference Between Private Credit and Public Credit?

Why is Private Credit Popular?

What Is the Average Return on Private Credit?

Is Private Credit a Loan?

What Are Calendar Spreads and How Do They Work?

Calendar Spreads Defined

How Calendar Spreads Work

Maximum Profit on Calendar Spread

Maximum Loss on Calendar Spread

Break-even Point

Calendar Spread Example

Calendar Spread Payoff Diagram

Calendar Spread Risks

Limited Upside

Delivery Dates

Timing the Trade

Types of Calendar Spreads

Put Calendar Spread

Call Calendar Spread

Diagonal Calendar Spread

Short Calendar Spread

The Bottom Line

FAQ

Is a calendar spread bullish or bearish?

Are calendar spreads good to use?

Should you let a calendar spread expire?

Investment and Financial Brokers Explained

What Is an Investment Broker?

Roles and Responsibilities

Types of Brokerage Accounts

Full-service Brokers

Discount Brokerages

Online Brokers

Robo-Advisors

Pros and Cons of Using an Investment Broker

Alternative investments,
now for the rest of us.

Alternative investments,
now for the rest of us.

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