Option Spreads Explained - The Ultimate Guide

[@TradeOptionsWithMe]

Here is the link to the Butterfly Strategy video: kzbin.info/www/bejne/raq5i2B4gth1fbc

[@vdub7090]

Don't I have to own the underlying asset to sell options on it?

[@TradeOptionsWithMe]

@@vdub7090 No you don't

[@stevewhite56]

You are a natural teacher! Easy to understand and your voice is calm and reassuring. Glad I found you! All the best to you!

[@diontrestrait9716]

Great video, it really tied together the differences of the types of spreads for me!

[@oanairani41]

Amazing video, very well explained. Thank you.

[@prasadsahasrabudhe460]

Great explanation Thank you so much

[@richardgshields]

I need examples to see how the options work, like vertical calls, when the expiration day price is ITM, ATM or OTM, Like to see what happens with different vertical call spread types , for example. Great work you are doing btw, subscribed.

[@TradeOptionsWithMe]

Hi Richard, Thanks for the feedback. I will keep this in mind for future videos.

[@mushqazi2444]

I'm a little confused on the formula. Width of strikes x 100 - premium = maximum risk/maximum profit. The premium is of which contract, the contract we sell or the one we buy or both combined? The way I understood it was the contract - contract. So for example, for a bull puts option spread, if I sell a puts contract for 600$ with a strike price of 50$ and I buy a contract with a strike price of 45$ for 400$ then the maximum profit should be, 5$ (width of strikes) x 100 = 500 - (combination of the premium so 600-400 = 200) and therefore the profit will be 300$

[@Lindalouise333]

Thank you very much, excellent video that clarified much for me

[@isaacc3307]

How can u have a horizontal spread with a purchased call expiring before the the shorted call? You can't do that because the sold/shorted call wouldn't be covered once your purchased call expired??

[@TradeOptionsWithMe]

First of all, you could just close both options as soon as the long option expires. But if you have enough buying power, you can also just have a naked short call in your account. Sure, it’s risky and depending on your financial situation I wouldn’t recommend it. But there is nothing that prevents you from doing so if you have an eligible broker account with enough funds.

[@Kneedeepinstock]

How do you go about learning what the market or stock is doing in order to execute a trade?

[@list1726]

Thank for great explanation

[@lenardlontoc3585]

So are you saying that your examples of Bull Spreads are 2 call options, and Bear Spreads are 2 call options as well? and Iron Condor is really a total of four trades all placed consequently? I was trying to see when you would reference a buy and call of put options. It seems they mirror each other but are inverse, yet I don't know exactly when bear put or a call put is in action based upon the video. This is where my syntax gets to the "which way did he go?" stage

[@andrewjohnson9437]

I am in a discord and I have executed 4 vertical debit spreads with success, however I have no clue the technical analysis of it and could not tell you how spreads work. I need to do more research.

[@hoodalrl]

Thank you!

[@gouravsingh6430]

good work mate

[@TradeOptionsWithMe]

Thank you!

[@leonardyoutube3349]

While trading options do you have to wait until expiration to close, can't you just close and take their money anytime in your favor?

[@tarakivu8861]

You can execute anytime before expiry. (european options can only be executed at expiry)

[@achrafabouras2118]

I don't understand do you do this with two different options? Or with the same option?

[@keshavsharma1914]

Can you give an example with indies new to trading

[@figh761]

Please make a video on ratio spread

[@TradeOptionsWithMe]

Thanks for the suggestion

[@hylomane]

Honestly your video is good, but I find myself looking at other sources to complete the lapse in missing explanations. You don't explain the graphs you put on the screen. You don't mention why they are vertical, horizontal or diagonal because that's how they appear in the options chain. This is critical information that helps the student remember.

[@TradeOptionsWithMe]

Thank you very much for the feedback. I really appreciate it! Admittedly, this video was not created for complete beginners. Back when I created it, the target audience was people that have already gone through parts of my free options trading education on my site (tradeoptionswithme.com/options-trading-education/).

[@alohaparsons3328]

Well explained, yet I still struggle the nomenclature and the technique, so I haven't used.

[@jasonacyeo]

When I have insomnia, I will view this video

[@gajen2507]

Thanks

[@gilbertmartinez6538]

I find that is I close at 70% of full profit, my close is not immediately filled and of course the market can move a good deal in the mean time. So How do I determine my actual profit on that closed put credit spread?? ...this is not easily available on etrade ...maybe the program is not so good ???

[@fetttm663]

But what Option do you have when the kitchen calls?????

[@fetttm663]

???

[@KDONeal1]

Good video

[@figh761]

In you view, how much capital required to make 50k as income from options in a year.

[@TradeOptionsWithMe]

It's very hard to answer that question since it totally depends on the situation, risk preferences, and more. If you manage to achieve a 20% yearly return, 250k would be enough.

[@blockwallstreet9036]

Great video but wake up lol... Im nodding of lol

[@Navostar1]

What happens when you buy one option at a high price and buy one for a lower price? Same company

[@TradeOptionsWithMe]

Depends on the the type, strike price, and expiration date of the options.

[@Navostar1]

@@TradeOptionsWithMe strike $13.50 and $14 price but expiration a week a part.

[@TradeOptionsWithMe]

@@Navostar1 That's not a typical strategy, so I can't give you any common tips on this. For an overview of the most commonly used strategies, check out this tool: tradeoptionswithme.com/strategy-selection/ If you want to analyze specific examples of strategies such as the one you proposed, you could check out The Strategy Lab: tradeoptionswithme.com/strategy-lab/

[@Navostar1]

@@TradeOptionsWithMe thanks

[@fermankeeton9625]

Background music disturbs my concentration on what is being said.

[@TradeOptionsWithMe]

Thanks for the feedback

[@alepepperoni2563]

Really? I couldnt even tell there was music until I read your comment and paid attention

[@davidhernandez6502]

oh my fucking god whos the narrator? edward swisherhands???

[@tippannan4251]

I lost 60k in one day as I took put for 60lots before one day expire day🤕😩..let me help to recover

[@jenglish1986]

The narrative is so boring I fell asleep good material just boring presentation

[@anoopmathen4566]

Thanks