Bear Call Spread (Credit Spread)

[@edwardsavela]

One of the easiest to understand of all the KZbin videos out there

[@the4hunters]

Wonderful video!

[@KP-dd2ci]

Great video and explanation...4.9 stars out of 5... the 0.1 deduction comes from the auto drill sound before slides are presented...unnecessarily cheesy.

[@chrisc3697]

Agree, annoying as hell!

[@jenniferej1911]

How about a video about bull put spread?

[@fredcdobbs823]

Easier than most to understand and better presentation, though a lot of distracting background glitz

[@1989clamchowder]

Please inform me; I'm missing something here. If you purchase a $55 call at $3 and it expires above $55, how do you lose $300?

[@1111_Millionaire]

Option are bought in a lot of 100. So it is $3*100(shares)= $300

[@anilkumarshahapur3655]

GURU mean Master and that is our Indian word

[@fredcdobbs823]

If it goes above $55, then you can buy it for a profit, say it went to $60; $300 call gets you $5 x 100 = $500

[@XxbossdogxX]

Yeah but you also lose $1000 on the option you wrote, so $1000 - $500 (that you get from the option you bought) - $200 (credit) = -$300. You would lose $300 (the max loss) in that scenario.

[@feverpitch82]

why bother buying the 55 call and losing $300?

[@Delta-gx4fm]

5:00 You limit your risk buy counter balancing if the stock were to pass 55 dollar mark. You lose 1$ on your sold call at $50 strike and Gain $1 dollar past your $55 dollar bought call. Limiting your maximum loss. It acts as insurance against a losing position, you are "obligated to sell" at expiration.

[@the4hunters]

What he said vvvvvvvvv

[@gotryce2]

straight puts? unlimited profit potential? uhhhhh its limited.....

[@jamesfleurimond]

In the video he says if price goes over the strike that you bought you lose is capped at the price you paid for the option you bought. We'll I lose way more. Very expensive learning lesson