CREDIT SPREAD SURGERY - Bear Call and Bull Put Mastery

Master the Bear Call and Bull Put Options Trading strategies and create the foundation for a consistent monthly income.
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397 students enrolled
Instructed by Hari Swaminathan Business / Finance
$60
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  • Lectures 16
  • Contents Video: 2 hours
  • Skill Level Intermediate Level
  • Languages English
  • Includes Lifetime access
    30 day money back guarantee!
    Available on iOS and Android
    Certificate of Completion
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About This Course

Published 3/2013 English

Course Description

CREDIT SPREAD SURGERY - ADVANCED CREDIT SPREADS

Consider this Option Trading Strategies course as "Advanced Credit Spreads". Both these spreads are dissected to convey an advanced level of knowledge and skill in using these credit spreads. Everything on How to Trade Options from the ideal credit spread trade setup, trade management, adjustments and exit. You're expected to know what a Bull Put and Bear call spread is.

This is a BUSY PROFESSIONALS SERIES course. If you have a regular job, then you need Option Trading Strategies that allow you to focus on your job, but yet create a somewhat stable and reliable income stream from your investments. The Covered Call, which we covered in Module II, is an excellent example of such a strategy. In this course, we dig deep into credit spreads and understand why being an Option seller (risk defined of course - no naked selling) may not be that bad after all. We analyze Probability, Time decay and Volatility considerations and come up with some pretty good stuff on How to Trade Options.

These spreads form the foundation blocks of "Monthly Income" strategies. And not surprisingly, all advanced strategies like Iron Condors or Backspreads use some variation of the Bear Call or the Bull Put spreads. Anyone wanting to create a consistent monthly income of 2% to 5% will use these strategies as part of their "Income" portion of their portfolio.

What you will master

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  • With Spreads, you can now be a seller of Options
  • The meaning of "defined risk" Options investing
  • Cutting-edge trade entry analysis
  • Selection of the right expiry series
  • Selection of the appropriate strike prices
  • Volatility considerations
  • Setting the optimal "width" of the Spread
  • Set your monthly target that can still let you sleep at night
  • Optimize Time decay, Probability and Premium collection variables
  • Set "pain points", and plan the exact nature of adjustments
  • Setup trades that require little monitoring
  • Why you can be wrong on direction and still make a profit
  • Ideal strategies for losing positions
  • How do you handle your position when your short strike prices are in danger

You should be knowledgeable about Debit spreads and Credit Spreads, which are covered in the Options Spreads course. The Options spreads course and Advanced credit spreads course is available as a bundle. The bundle is available for a 20% discount.


What are the requirements?

  • Knowledge of Bull Put Spread and Bear Call Spread
  • Knowledge of basic Options - Calls and Puts

What am I going to get from this course?

  • Mastery of Credit Spreads - the Bear Call and Bull Put spreads
  • Learn to create monthly income strategies that consistently produce income
  • Advanced adjustment strategies to manage credit spreads
  • Master the art of adjusting credit spreads when they get into trouble
  • Construct monthly income strategies for consistent returns
  • Fine tune the art of picking the right strikes, expiry series and Volatility environment before placing a trade

What is the target audience?

  • Anyone that already understand what credit spreads are but are looking to take their skill to advanced levels
  • Busy professionals who want to create monthly income strategies that require adjustments only once in a few days
  • Anyone wanting to build long term income strategies

What you get with this course?

Not for you? No problem.
30 day money back guarantee.

Forever yours.
Lifetime access.

Learn on the go.
Desktop, iOS and Android.

Get rewarded.
Certificate of completion.

Curriculum

Section 1: SELECTION CRITERIA FOR SPREADS
06:11
Credit spreads are the bedrock of "monthly income strategies". In this course, you'll learn to construct the ideal credit spreads, and manage them through to successful exits.
12:37
A comparison of the Bear Call spreads and Bull Put spreads - the two credit spreads. Although both these strategies are identical in their characteristics, they differ in one very big way.
09:33
Choosing the right expiry series is the first step to constructing an efficient credit spread.
09:02
The next step is picking the right strike prices. Although this is mostly an individual choice, there is a sweet spot that balances the collection of premium with the probability of success, with success being defined as the credit spreads expiring worthless. Risk versus Reward - that's what its all about.
07:36
What width of the spread gives you the edge and what are its drawbacks.
02:20
Which credit spread do you choose and why.
04:50
Last but not least - have you taken into consideration the volatility environment. This could make or break the trade. 
Section 2: LIVE BEAR CALL TRADE MANAGEMENT (Netflix and Linkedin)
05:11
Trade setup for 2 credit spreads - Netflix and Linkedin.
07:48
The Linkedin trade starts to go against us. What is the adjustment point and why. And what is the nature of the adjustment.
07:17
The first adjustment on the Netflix trade - the goal is to eke out small returns that can add up.
06:08
Linkedin continues to move against us. This is what we wanted, and results in the second adjustment.
06:16
The Netflix trade is choppy - but we are in control.
06:51
Linkedin is very bullish - and adds pressure on the trade. The goal is to get back to breakeven.
05:45
A good exit for Netflix, with a 11% return in 2 weeks.
03:56
If you can manage the losers and come to breakeven, the winners will come automatically. This is a tough trade but we end up above the water line. We hit about a 4 to 5% return on a trade that went against us from the beginning.
08:38
This lecture is a wrap-up of the course highlighting all the important points of "monthly income strategies". 
Credit Spreads quiz
5 questions

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Instructor Biography

Hari Swaminathan, Options and Financial markets expert, Trader and Investor

Knowledge. Strategy. Execution.

Hari Swaminathan is the founder of OptionTiger, a cutting-edge Options education and trading company based in Washington D.C.. Hari is an entrepreneur, everyday person and a self-taught Options expert for over 8 years. Hari has a Bachelors degree in Engineering from India, and MBA degrees from Columbia University in NYC and London Business School in the U.K

More than ever, its become important for everyday people to take control of their financial situation, and create additional income in a smart, risk-controlled manner. This is precisely my mission. Through knowledge, education and investment discipline. Options are powerful, but they have a learning curve. I've broken down all the complexities of Options in simple language that everyone can understand. The courseware uses real trade examples, always highlighting the pluses and minuses of every investment situation. Options provide the best way to take advantage of bull cycles, bear cycles and everything in between.

As someone that has self-learnt Options and through making mistakes, I can tell you Options trading is not something you should take lightly. You will hear people talking of fantastic triple and quadruple digit returns. I'm here to be brutally honest with you - 

- Be very very careful in the first 12 months of Options trading. 

- This is when everyone is the most vulnerable to losing money. 

- Your main objective during this time is to focus on learning this craft and not lose money during this time. 

Having said that, if you can get past the first 12 months and acquire the expertise in a systematic manner, true financial independence awaits. Options are a mathematical and strategic game much like Chess, and no amount of technological advances can make this skill obsolete, because the fundamentals of Options are never going to change. 

You can trade Options from anywhere in the world, regardless of how old you are. You never have to worry about job security any more because you have a skill that can produce consistent wealth month after month. 

But you have some serious but exciting work to do before you can get there, and I'm here to help you in this journey. 

Watch my Free Course for Options Trading Beginners where I draw out a detailed roadmap of what this 12-month journey looks like, and the specific strategies you should master during each step of this learning process. 

Watch my Free Mini-courses or my YouTube channel , all of which have the highest quality of education material. 

And join me in my UDemy courses, where I share cutting-edge theoretical knowledge mixed with practical insights, strategy and impeccable execution through live trading examples. 

If you have any questions at any time, please feel free to message me on Udemy.

The order to follow on my Udemy courses

Comprehensive guide to Financial Markets, Investing and Trading

Options Trading Beginners Bundle (3-course Bundle)

Advanced Options Concepts

Options spreads and credit spreads Bundle

Technical analysis and Chart reading Bundle

After this, the order does not matter. You can take any of the courses as per your interest.

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