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The Short Vertical Spread (aka Vertical Credit Spread) is the most basic options trading spread.
Use this option spreads strategy to sell option time premium with very little risk and capital. Quit letting time decay ruin your trades and start letting it work in your favor. You can trade this strategy with an account size of just 2k while allocating very little capital to each trade.
Watch this video to fully understand how this strategy works and how to trade it.
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🚨 Hey all, thanks so much for the great feedback on these videos! For those of you requesting more content, we put together an Options Trading Masterclass for you, 100% free. We dive further into our strategies and trading style. If you’re interested, check it out here – https://skyviewtrading.co/3Qf5LuG
Can you please remove the background music. Your videos are the best I've seen so far on understanding options. But I just noticed the background music is annoying
Man still confused 😢
Be very carefully about doing this.
What is the difference between this and gambling?
This video confused me. I won’t give up on learning tho
Where is the liquid stock watchlist?
So using vertical strategy you wont get assigned with stocks if share price goes against you at exp or at div.
for beginners: this video explains what is a vertical spread. It does not fully explain how to adjust the trade if the stock moves against your expectations. Before placing any trade it is a MUST to have an exit plan, especially describing an unfavorable move. Also be aware that you might think that the long options limit the risk. I you are assigned on a Friday, on Monday the Long option will be gone…
Thanks so much for the video! I have a quesion? whats the scenarios like with a bull vertical spread option strategy with different expiration dates? Thanks in advance. Alex
Why does this gives higher probability of success? I thought this only helps to protect your loss. Thanks for helping to explain this.
Very excellent video. I’m gonna try that. Fidelity active trader pro also calculates profit loss across all prices and expirations. It’s nice. I trade the spread bit don’t submit it to see what the spread will do
Mega thumbs up
If the share price ends up between the spread at expiry, do i need to buy the 100 shares for the put option i sold?
Thank you!!!
Lot of quick math in a few mins. Didn't catch how SELL 100 CALL @3.00 -> $30.00 end up as ($2,700). Could mentally rewind and calculate. But, it'd be helpful to break down some of the number crunching intermediate steps since going quickly in a few mins.
I suppose this is a more advanced video/topic. My head is spinning lol. These videos are great but this is the first one I’ve come out at the end with the confused face. I’d like to see a more in-depth from a-z with this topic. I’ll watch it a few more times to see if it clicks. Great work
Couldn't you just stop loss at 2200$ to make a profit no matter what
These videos are great. Very informative. I have a question with the last example as I'm not sure how you make 80$ on the trade if the stock were to stay at 101. We sold he 100 call hoping it stayed below 100 and bought the 105 hoping it went higher. I understand we collected the 300 premium but we essentially lost on both trades, correct? I am very new and looking for further clarification. Thanks.
Can you create a video using ThinkorSwim that shows how to EXIT a Call Credit and Put Credit Spread with a PROFIT before Expiration? I want to make 50% of the Credit I took in when entering the trade. I want to EXIT the trade BEFORE Expiration
I don’t understand how an option could be deemed worthless yet you profit from it? Can someone explain that? @3:09 for example. It states they are both out of the money, yet the sell 100 call @ 3.00 made $300?
Great, clear and very easy to understand the way you explain. thank you.
can we say in PUT we have to buy closer to the INT and sell further OTM ? coz in PUT selling closer to INT we are losing and buying further OTM is gaining .. i mean PUT should be the opposite of Call in Call Sell > Buy in PUT we buy >> sell for protection .. right ? pls let me know if i missed something
Lovely simple explanation for a newbie thanks. Can see how learning this is the foundation of more complicated trades I didn't see that before.
How does assignment work if the price is in between your 2 strikes at expiration? Are you assigned your short call while your long call expires worthless?
great vid! super helpful!!!
did you say you stick to "ONLY ILLIQUID STOCKS" ?
Is this calculation based on buying 100 options ? Just miss this.