What Options Traders MUST KNOW About Vertical Spreads

[@projectfinance]

I enjoyed making this video! I hope you liked it! Let me know what you think. I'd appreciate your feedback. Also, I just moved so don't mind my simple studio! It's about to get a bit more vibrant! -Chris

[@Nice-Y]

Thanks to your long Iron Condor video(s), I've been doing ok this year so far 👍 I must've watched all your spreads, butterflies, condors, and greeks at least 10 times each by now

[@zo9fg]

I really like these in depth advanced concepts for the most basic option strategies, pls keep em coming!

[@projectfinance]

Will do! Many more to come! Let me know what you think about the side-by-side editing style in this video. It's a new format I'm trying.

[@opadrian4814]

@@projectfinance the edit is perfect! Very simple to understand and very clear, the format is very elegant

[@prasantadas3589]

hey bro...i have gained in depth knowledge through your option series which helped me a lot in my trading journey....thank you a lot...love from INDIA

[@projectfinance]

Thank you for watching! Any topics you'd like to see?

[@jimjames5612]

Excellent Presentation, Thank You, much appreciated !

[@johndegoldi3065]

Chris, great to have you back talking options mate. Keep it up, looking forward to more vids. Regards JD

[@projectfinance]

Thank you JD! Feels good to be producing again.

[@hareshramroop943]

Amazing video, Chris!!! Thank you for sharing your vast experience in the options space! Also, I like the Meditations Marcus Aurelius book behind you! 👍👍👍

[@projectfinance]

Thank you Haresh! Haha I was waiting to see how long it would take for someone to notice that book! You are the first! The most life wisdom I've ever seen packed into a book.

[@rd-tk6js]

well explained, thanks !

[@gonzo1483]

HI Chris, I remember a video where you tested cutting losses when VIX was above 30 but I can't find it. I would like to revisit it if it's still there. Thanks!

[@projectfinance]

Hmm it's definitely an older video, probably 2019/2020. I'll look for it.

[@gonzo1483]

Thanks!

[@gonzo1483]

@@projectfinance Intuitively, do you believe it's suboptimal to have a VIX-based threshold? A drawback I see is getting whipsawed with exists and re-entries. But it also seems there would be benefits with tail-risk and increasing one's size..

[@0o_KASHIII_o0]

There's so much value in all your videos it's unbelievable. Thank you for all the hard work you put into these videos. Sending you a lot of good karma. You deserve all the gains from option trading!

[@jeffmerver2444]

Keep these coming bro, your videos have been instrumental for me. Amazing content

[@projectfinance]

Thanks so much Jeff! More to come! Any guides you want to see?

[@susielu3769]

I watched all of your videos! Thanks for your good work!

[@projectfinance]

Thanks for watching Susie! I appreciate it.

[@babubabu-zw2yi]

Chris, how spread will benefit when IV decreases from 30% to 20% at 4:39 ? Vega is positive for long call and decrease should minus the spread price . Please explain more here

[@projectfinance]

Because when the spread becomes in-the-money, the long call has mostly intrinsic value which is immune to changes in IV. When being at the short call's strike, the short call will have more extrinsic value than the long call, and decreases in IV (decreases in extrinsic value) cause the short call to lose more value than the long call, causing an increase in the value of the spread.

[@babubabu-zw2yi]

@@projectfinance Got it!!.Thank you!!

[@ricardoschossland7356]

Hey Chris, thanks for the video! I was just wondering if you have been buying leaps /stocks on MSTR now that the prices are so low? Thanks!

[@projectfinance]

I've been scaling into long stock in my stock/options accounts but the cleanest play is to just buy BTC which I have been doing. If you're confined to brokerage accounts (perhaps with an IRA) and want to play BTC, MSTR is one of the best ways to get exposure until we have a spot BTC ETF. Then, the spot BTC ETF will be far superior to holding MSTR because you won't have to have faith in MSTR as a business or the company's intent on holding their coins.

[@milenao4455]

Thanks for your amazing videos. Very interesting to see how theta and vega can flip, and how we can actually benefit from the passage of time !

[@enricosaccheggiani3192]

Great video thanks

[@famjamfisch]

Iced coffee all day! Great video, Chris! Cant wait for the next one.

[@projectfinance]

Oh yeah! Just made a fresh batch of cold brew I'm about to enjoy for the first time! Thanks for watching/commenting!

[@rajpap700]

Thank you so much for all the knowledge man! Good vybes from Trinidad🙏🏻

[@projectfinance]

You're welcome and thank you for watching! I appreciate it!

[@Sagardeepthinks]

excellent explanation SIR.

[@projectfinance]

Thank you!

[@kathleentonn-oliver8836]

Thanks for wearing a shirt; looks very professional. I hated thinking you couldn't afford one.

[@projectfinance]

✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: geni.us/options-trading-pdf

[@vac2695]

Bro, what strategy you are doing for leap or any other to be profitable? Mkt has become so much boring these days.

[@amg_0302]

This was pretty mind blowing.

[@projectfinance]

Thanks Anthony!

[@DJ11o1]

Meditations by Marcus Aurelius? A man of culture I see. Great video as always!

[@projectfinance]

Great eye! One of the best books I've ever read! Thanks for watching and leaving feedback 🙏

[@hn99561]

is this influenced less by a wider spread

[@projectfinance]

Wider spreads will generally have more exposure to time decay and changes in IV because they will act more like naked long/short options. Depends on the specific spread structure though.

[@mojtaba13]

Does Tastyworks trades goes through citadels, in house inventory and dark pools similar to other cheaper brokers?

[@projectfinance]

I believe most popular brokerage firms sell their order flow to high frequency trading firms, but that's what allows brokers to charge low commissions. I'm not an expert in that field though, I don't have experience working at a HFT firm or brokerage department that handles that side of the business.

[@Xektt]

Quick question: Can you please recommend a tax office/tax company that focuses on day traders & trader status?

[@josephmitchell6340]

Finally he's back with the options bombs

[@projectfinance]

I'm thinking I'm back!

[@caonabocolon1421]

I love it….

[@mcgch46e80]

Discuss options trading: pro's and cons with Warren Redlich.

[@Jnf458]

So much information in 13 min, maybe after watching it 10x it will sink in

[@projectfinance]

Definitely take the time to absorb it. Once you grasp the concepts then you'll be prepared to understand how all your vertical spread positions will perform vs. time and IV depending on where the stock is.

[@bonzeno85]

Ur so awesome.

[@projectfinance]

Thanks Anthony! You are too!

[@bballgtr]

Don't ever use the phrase "to make a long story short" -- you (nor anyone) ever do make the story short- thus you lose confidence with the listener.

[@projectfinance]

Good point. It does indicate an opportunity to be more concise.

[@Dnyink]

Please don't turn into a generic youtuber Chris

[@projectfinance]

What do you mean?

[@Dnyink]

@@projectfinance personally I watch your content time and again because is super high quality, and I've learned tons from it but also because in my experience with your channel, its all about the informátion, and not the youtuber, which for me is awsome. And what I mean by generic youtuber, is that type of youtuber whose content itself is not good enough to keep viewrs coming back and because of that they need the catchy tittle and emoji face😱. Thats not your case, I believe your channels support comes from the palpable value you provide, rather than the style in which you do it. All of that to say I'm a huge fan and have nothing but appreciation for your content and would hate to see it suffer because of a change in style. Great video as always

[@projectfinance]

@@Dnyink Thanks for the in-depth reply! I appreciate it! Regarding the title and thumbnail, I don't *want* to make exaggerated faces like this, but it's what works on KZbin (most of the time), which is why KZbinrs do it. If you are going to spend time making a video that you think is valuable and you use a normal thumbnail that gets a 2% click rate vs. making an exaggerated face that gets a 5% click rate, doesn't it make sense to go for it with the second version? As long as the content backs up the title, all is well! I appreciate you watching my videos and I can't wait to publish more stuff to hopefully help you and others learn more!