Debit Spread Examples on $NKE and $SBUX

[@JakeBroe]

Give this video a LIKE to support my channel! Also check out my entire playlist on Trading Options here! kzbin.info/aero/PLscTZuOqKWIxSZzy4ObKWDznEsCot_1HU

[@mrwsilva1]

Hey Jake, just know that there are many of us who do appreciate these videos. I’ve learned a lot and love these videos, keep ‘em coming. Thank You!!

[@JakeBroe]

Haha, thanks Mr. Silva! My options trading videos are honestly my worst performing uploads since so few people want to mess with them. But I think the math is all very fascinating and exciting. So I am sticking with these videos until I cover all the major topics and strategies I want to cover. There is always time later on to make generic "top 7 side hustles right now" videos that everyone else makes, lol

[@mrwsilva1]

@@JakeBroe Exactly Jake, and THAT’s why this is my favorite channel in all of KZbin. I love all the math puzzles, and how you have so many “options” you have with options (dad joke, haha). I figured there isn’t a huge crowd who follow along, as it does take some work and it ain’t that easy either. So again, I really appreciate the time and effort you put in these videos. So while you keep pumping them out, I’ll keep supporting them with a comment or two and a thumbs up. 👍 Thanks Jake!

[@adventureoverload9674]

Stumbled onto your videos and prefer your videos over your competitors. Your voice, speed of delivery, and overall knowledge of the subject matter is second to none. Keep up the videos my friend......Jason

[@JakeBroe]

Thanks Jason! I appreciate that greatly! Hopefully the KZbin algorithm at some point decides to agree with us.

[@runningrabbit04]

Here’s an extra thumbs up! 👍

[@JakeBroe]

Thanks so much rabbit!

[@martintreptow8943]

Watching your video is like taking a college course. Best info. Respect from Jax, FL !

[@JakeBroe]

Thanks Martin! I appreciate that!

[@Mobz_t]

Best guides for option trading on KZbin. as always Thanks Jake. Keep them coming.

[@BayneFamily-d8e]

Thank you for making these videos! They are very informative, and really helpful. Your explanations are really easy to understand. I've been doing simple level 1 options and am looking to move up to level 2 trading, and you really helped explain it (spreads, etc). Thanks again!

[@nodeepfakes7]

best explanations for option spreads on the web!

[@ba177ba18]

I learn so much from Jake. one of the best trading channel on YT. Thank you!!! 🙏

[@JakeBroe]

Thanks for watching and supporting my channel niZmo! I appreciate you!

[@nicks8459]

Thanks for the video. Good refresher. Hope they work out for you

[@JakeBroe]

Thanks Nick! We'll see what happens in the next two weeks!

[@Bangpaulxu]

Thanks Jake for another vid

[@JakeBroe]

Thanks for another comment Bangpaulxu!

[@simba9225]

another great tutorial. Thank you

[@JakeBroe]

Thanks for watching simba!

[@jasonnysacleomedes5084]

Please keep doing the tutorial videos.

[@JakeBroe]

More videos coming soon! Cheers Jason!

[@mendres]

Nicely done!

[@JakeBroe]

Thanks mendres! Cheers!

[@redexit0707]

Hello Jake, If the price of the vertical call goes up, past the call price that you bought, way before the expiration date do you close the position early? Thank you for your time and attention.

[@tommypham1127]

Thanks Jake !

[@JakeBroe]

You are very welcome Tommy! Cheers!

[@chrisbrown8748]

Darn I was hoping today’s video would be about ASPS but whatever I’m here to learn.

[@JakeBroe]

I recorded a video last night but didn't upload it.... I still feel like I need more information to make a useful video. I still have my 600 shares, I am still holding.

[@randysmith6297]

@@JakeBroe bought 523 @ $9.79

[@nicks8459]

Yeah but the govt is extending the moratorium, despite acknowledging it is likely not legal for them to do so, in many locations until November

[@craigchambers4183]

Alright...looking forward to the ITM spreads. I did one today but have no idea how it works, only that I lose very little for a greater gain if the underlying stock drops by the end of next week. This might be cheap insurance against a actual crash? Anyway, appreciate the work and looking forward, as I said, to the ITM spread one coming.

[@Danielprokopij]

Hey i have been watching your spreads videos and was wondering if you plan to make a video on what to look for when closing spreads? I guess just wait till the value is in the positive before expiration but you give good examples that make it easier 😅 im unsure if you use them enough though to have one available for a video to reference though.

[@JakeBroe]

Hey Daniels! If you bought a debit spread, I personally would just sell to close it once the share price has gone past my short leg. Anytime you've captured 50%+ of any options trade, you've already captured the easiest 50% and the rest is perhaps not worth your time.

[@mrwsilva1]

Hey Jake, thought I’d ask here and support with more comments hehe… QUICK QUESTION, I know a few months back in one of your videos, don’t remember which one that’s why I’m asking, but you recommended some good financial books for us to read. I just got Audible and want to see if they have them. What were those books titles? I’d greatly appreciate it.

[@Nice-Y]

It's possible to construct a debit spread with positive theta if buying itm and selling atm.

[@JakeBroe]

Yes! I have a video coming soon about in the money spreads. Coming next week!

[@jamessamuel758]

You are the goat

[@nijlee]

Hey Jake, how do I set a limit in Schwab to exit vertical spreads to make sure I can capture 50% of profits prior to expiration?

[@JakeBroe]

I am not sure. I can look in to this!

[@craigchambers4183]

Still trying to master the terminology. I did a Bull Put Spread? today with WM, sold the strike of 141 and bought the strike of 140. I will earn the credit I received ($20.73 after fee/commission) as long as it remains above the 141. I got it after a sharp pullback this morning thinking WM will have this dip bought back or steady on before rising again. May have done better with a Bull Call Spread? selling the 141 and buying the 140, but I didn't check it in the moment. I think the loss on these Debit Spreads are too risky for me, for sure.

[@JakeBroe]

Nice work Craig! Yes, I think the size of a potential loss vs gains is attractive to some... but i can't get over the probabilities. I'd rather trade something with a low return and a high probability of success than the other way around. Cheers!

[@nightelf7921]

Great video! It would be very nice that you how us how to calculate profit or loose based on the stock price of the option in Charles Scwab or other tool. If the stock goes to 150 I won aprox 500$ for example.

[@JakeBroe]

Sounds good David! I'll see if Schwab has this function somewhere.

[@nightelf7921]

@@JakeBroe thank you so much Jake!

[@nightelf7921]

@@JakeBroe because one thing that I realize is that there is no option stop or limit based on price. And to create a setup based in orders based on price I need to try to stimate how much the contract will cost before the stock price arrives to an objective.

[@nightelf7921]

I saw something but just for calculating in expiration not for the price of the current option contract.

[@SD-mg7np]

So what I gather is why purchase debit spreads when you can sell credit spreads and reap the benefits of the more movement of the stock .

[@JakeBroe]

Debit Spreads require a lot of price movement and can be more profitable if successful, but the odds are against you. I generally prefer selling credit spreads because if the stock stays flat, i still make money.

[@edgarfletes8196]

I know what you mean on those options courses, I saw someone charging $1,500 for it! Big yikes.

[@JakeBroe]

$1,500 is insane... maybe I would charge a corporation that much for my time, but not an average person on KZbin. Crazy, lol

[@JohnnyLe-xe7oo]

goat

[@JohnShoultz-vt7ev]

I put some white out on a bee, and it died.

[@jasonnysacleomedes5084]

1st

[@JakeBroe]

You got it!