The Vertical Spread Options Strategies (The ULTIMATE In-Depth Guide)

Video Description

✅ FREE 200+ Page Options Trading for Beginners PDF and email course: https://geni.us/options-trading-pdf 💥 Sign up with tastytrade and unlock a 1% cash match (up to $2,000) and 30 days commission-free trading when you open a new account: https://geni.us/tastytrade The vertical spread options strategies are at the core of EVERY complex options strategy. If you can master these, you will understand 80% of options trading strategies. In this video, you will learn to master the vertical spread strategies through in-depth explanations, trade setup visualizations, expiration risk graphs, and visualized trade performance visualizations using real option data. I'm also going to teach you more advanced topics, such as understanding how a vertical spread's profitability relates to the amount of time to expiration, time decay, and changes in implied volatility. My hope is that with this video, you can develop a deep understanding of the four vertical spread strategies, and make a gigantic leap forward in your options trading expertise. Not only will you learn the basics and see examples of how the strategies work, but you will also learn to understand vertical spread mechanics like an options trading expert. Video Timestamps 0:00 - Introduction 0:48 - Video Prerequisites 1:14 - What is a Vertical Spread? 2:21 - Why Trade a Vertical Spread? (Single Options vs. Spreads) 6:05 - The Bull Call Spread (Call Debit Spread) 8:23 - Bull Call Spread Expiration Risk Graph 10:41 - Why is a Vertical Spread's Max Value the Width of the Strikes? 11:49 - Bull Call Spread Trade Example (Real Data Visualization) 15:09 - How to Close a Call Debit Spread 16:14 - The Bull Put Spread (Put Credit Spread) 18:46 - Bull Put Spread Expiration Risk Graph 20:33 - Bull Put Spread Trade Example (Real Data Visualization) 23:01 - The Bear Call Spread (Call Credit Spread) 24:42 - Bear Call Spread Expiration Risk Graph 26:13 - Bear Call Spread Trade Example (Real Data Visualization) 27:07 - How to Close a Call Credit Spread 28:29 - The Bear Put Spread (Put Debit Spread) 29:45 - Bear Put Spread Expiration Risk Graph 31:19 - Bear Put Spread Trade Example (Real Data Visualization) 35:14 - Vertical Spread Profitability vs. Time to Expiration/Time Decay 40:56 - Using tastyworks to Compare Vertical Spread Prices vs. Time to Expiration 43:31 - Vertical Spread Profitability vs. Changes in Implied Volatility 44:34 - You Want Implied Volatility to DECREASE When... 46:24 - What a Decrease in IV Means for Vertical Spread Pricing 49:31 - The MYTH About Debit Spreads vs. Credit Spreads and Implied Volatility 50:47 - You ONLY Want Implied Volatility to INCREASE When... 52:31 - How to Select the Right Strategy (Some Guidelines) 54:08 - Using tastyworks to Compare Debit Spread vs. Credit Spread Setups/Pricing 1:02:22 - What Happens to Vertical Spreads at Expiration? 1:03:18 - Fully In-The-Money Call Spread at Expiration (Example) 1:05:17 - Partially In-The-Money Spread at Expiration 1:07:13 - Early Assignment Risk With Vertical Spreads? 1:08:26 - Debit Spread Early Assignment Risk: Why You Should Close the Trade 1:12:19 - THANK YOU! Please Subscribe/Like! VIDEO PDF: https://www.dropbox.com/s/8539whmkhsp87wx/Vertical_Spreads_Ultimate_Guide.pdf?dl=0 Thank you for watching! I hope you learned a lot in this video. Questions? Comments? Suggestions? Please leave me a comment down below and I'll get back to you when possible. ==== ADDITIONAL RESOURCES / VIDEOS MENTIONED ==== Options Trading for Beginners (The ULTIMATE In-Depth Guide): https://youtu.be/7PM4rNDr4oI Covered Calls for Beginners Video: https://youtu.be/TVOFbV1hMFM Vertical Spreads (Basics for Beginners): https://www.projectfinance.com/vertical-spreads/ Lost $30,000 on a $1-Wide Credit Spread (ALWAYS Close Before Expiration): https://youtu.be/rtVFj9nRRDo tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.