
learn vertical credit spreads and vertical debit spreads through practical examples, gaining an intuitive understanding to assess stocks and implement profitable credit or debit spreads, and prepare for spread combinations.
Explore call and put spreads, including bear call and bull put spreads, as building blocks of option spreads that require less upfront capital and potentially limited risk.
Review essential option terms, including call options with strike price and expiration date. Explain in-, at-, and out-of-the-money concepts; note puts mirror these terms.
Master call option credit spreads by selling a closer-to-the-money call and buying a farther strike, profiting when the stock stays flat or falls and the options expire worthless.
Learn a call option credit spread on Amarin, selling lower-strike calls and buying higher-strike calls for protection, with a $250 reserve and about 60% gain in 28 days, ~720% annualized.
Explore call and put debit spreads, how they require a net payment and offset costs by selling options, with stock ABC examples illustrating max gain and return on investment.
The zoom debit spread enables a bullish bet on an expensive stock for 250 upfront, with potential 500 income and 250 risk.
Credit Spreads, Option Spreads, Vertical Spread Options, Debit Spreads, Bull Spreads [Title and Course Focus]
Option spreads: Credit Spreads and Debit Spreads, what makes them such an awesome way to invest?
What makes this option spreads (aka vertical spreads: credit spreads and debit spreads) trading course different is that we take it step-by-step. You will learn explicitly what is done to generate income regularly from option spreads. The focus, above all, is on Simplicity and Clarity.
We start off with clear explanations and examples of Option Spreads (Credit Spreads and Debit Spreads), showing each step of the way, and then move on to show you step by step how we would actually execute option spreads live on a trading account online.
We'll cover:
The most common types of options spreads that are used—CREDIT spreads and DEBIT spreads (these are also known as vertical spreads)
A quick review of some basic but important option trading terms needed to trade option spreads
A Clear introduction to option credit spreads: what credit spreads are, and why credit spreads are so useful
Then we look at option debit spreads: what debit spreads are, and why debit spreads are so useful
How to use vertical spreads: we will put together option credit spreads or debit spreads for a stock you think will be going up or staying flat, OR going down or staying flat…
Multiple step by step option spreads examples, where we keep practicing these vertical spreads by putting together a real credit spread and debit spread based on actual stock and option table information
We’ll also be looking at some situations where instead of spending huge amounts of cash to buy a call or put option, we use a debit spread to invest in the same direction but using just 10% of the money
We’ll cover important things to keep in mind when trading option spreads (for both credit spreads and debit spreads), as we approach the expiration date
And then we’ll look at executions of credit spreads and debit spreads using my live online broker account, recorded in real time!
As we know, the future stock price for any company we want to invest in can only go a few different ways:
-more or less flat,
-a little bit up or a little bit down,
-significantly up or significantly down...
Option Spreads investing allows us to make profits in all of these outcomes.
Credit Spreads, Option Spreads, Vertical Spread Options, Debit Spreads, Bull Spreads [Title and Course Focus]