Option Spreads and Credit Spreads Bundle
4.5 (539 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
5,402 students enrolled

Option Spreads and Credit Spreads Bundle

This 2-course bundle on Option spreads and Credit Spreads surgery is the bedrock of stable "Monthly Strategies"
4.5 (539 ratings)
Course Ratings are calculated from individual students’ ratings and a variety of other signals, like age of rating and reliability, to ensure that they reflect course quality fairly and accurately.
5,401 students enrolled
Created by Hari Swaminathan
Last updated 12/2019
English
English [Auto]
Price: $149.99
30-Day Money-Back Guarantee
This course includes
  • 4.5 hours on-demand video
  • 8 downloadable resources
  • Full lifetime access
  • Access on mobile and TV
  • Certificate of Completion
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What you'll learn
  • Learn Option spreads and advanced Option spreads
  • Provide the foundation to create consistent "monthly income strategies"
  • Enable someone to achieve 3 to 4% returns per month with credit spreads
  • Deep insights into tactics that can produce an edge for the Options trader
  • Setup, management and the art of adjusting credit spreads
Requirements
  • Must know all the basic strategies of buying single Options strategies
Description

  COURSE BUNDLE - OPTION & CREDIT SPREADS STRATEGIES

  Details of this bundle are provided here, but you may find more information on the individual course pages. 

  SECTION I - PHILOSOPHY AND DEFINITION OF SPREADS 

  We introduce option spread strategies in this module. Options spreads sit right in between the 4 basic Option positions and the more Advanced level Option strategies. The Spread is the bridge between the basic Option strategies and the advanced strategies. In fact, most advanced strategies are composed of the spreads we cover in this course, so this stuff is the key. For the busy professional, Spreads offer the right mix of reward and risk. All 4 vertical spreads introduced in this course are extensions of the 4 basic Options. Spreads add an element of cost control and / or risk control to individual Options positions. Master the four Options Spreads, and you would have acquired a skill that can create consistent monthly income. Additionally, you'll be well on your way to mastering the advanced Options strategies. 

  What you will master 

  • Advantages and disadvantages of single Option strategies - Long and Short

  • How Spreads tackle the negatives of individual Options

  • With Spreads, you can now be a seller of Options

  • The meaning of "defined risk" Options investing

  • Spreads help you control your costs and risk exposure

  • What are the differences between credit and debit spreads

  • Control risk and costs without compromising on Probability

  SECTION - II REAL LIVE TRADES ON THE 4 OPTION SPREAD STRATEGIES 

  THE BULL CALL SPREAD 

The Bull Call Spread is an extension of the Long Call Option. When you buy a Call Option, you are bullish. The Bull Call spread maintains the bullish element of the Long Call while controlling your costs and has a limited losses profile. Of course, everything is a compromise. But you would probably be willing to make this compromise. We explain why this spread is called a Bull Call spread, and how to address any confusion from these strange names. The risk-reward profile of a Bull Call spread is very favorable. We define why the Bull Call spread is a Debit spread, and study its Profit and Loss diagrams in detail. We put a real trade on IBM and we navigate the trade for a couple of weeks. 

  THE BEAR CALL SPREAD 

The Bear Call Spread is a credit spread, and we explain why credit spreads are a viable way to assuming an Option seller's profile. The Bear Call spread limits your risk. We study the role of Probability in selecting credit spreads as well as implied volatility considerations and time decay. Time decay is a key component of credit spreads and the Bear Call spread can be an excellent way to generate monthly income. All spreads can be part of the busy professional's playbook, but credit spreads can be especially attractive. We analyze the right criteria for credit spreads, including the selection of the expiry series as well as the individual Options itself. We put a real trade on Amazon (AMZN) and track, monitor and adjust this trade until its exit. 

  THE BEAR PUT SPREAD 

The Bear Put spread can be a powerful strategy for bear markets. The Bear Put is an extension of the Long Put Option. The Bear Put has some specific features, which make it a very attractive spread, and we dig deep into these characteristics. We put a real trade on Netflix (NFLX). The risk reward characteristics of Bear Put spreads are very attractive as its losses are limited. The Bear Put, just like the Long Put is a Vega positive trade, so this trade can optimize a bearish move as well as any upside from implied volatility changes. The choice of expiry series, time decay effects and the choices of individual Options are also important. 

  THE BULL PUT SPREAD 

The Bull Put spread is a flat to bullish that profits primarily from time decay, but can also profit quicker from a move to the upside. Its important to pick the right strike prices for the Bull Put spread, as is a thorough analysis of the stock's chart and support levels. In this course, this is what we do - we pick Google (GOOG) as our candidate for the Bull Put, and analyze past price action, support levels and put on a successful Bull Put spread. 

  MONTHLY INCOME STRATEGIES PRIMER 

 
If you have a regular job, then you need strategies that allow you to focus on your job, but yet create a somewhat stable and reliable income stream from your investments. In this PRIMER, 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. 

  CREDIT SPREAD STRATEGIES - ADVANCED CREDIT SPREADS 

  SECTION III - Selection Criteria for Credit spreads 

Consider this 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 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. 

If you have a regular job, then you need strategies that allow you to focus on your job, but yet create a somewhat stable and reliable income stream from your investments. 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. 

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. 

  SECTION IV - Live trade entry, Management and Exits 

  What you will master 

  • 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

   


Who this course is for:
  • Must know Options basics - Calls and Puts
  • Must know Time decay, Implied Volatility, and Option Greeks
Course content
Expand all 25 lectures 04:37:31
+ INTRODUCTION TO OPTION SPREADS
3 lectures 47:38
We discuss the advantages and disadvantages of Option spreads, and why Option spreads can provide vital control with costs and risks. Option spreads are a step up from Single Options and mastering spreads is key to enhancing your learning on Options.
Preview 11:38
The Bull call spread is also called a Debit spread and this spread is a direct extension of the Long Call single Option. How does the Bull Call spread tackle the negatives of a Long Call position. And what are the compromises.
Introduction to Option Spreads Primer - Part II
14:33
The Bear Call is an extension of the Short call single option. Once you put a Bear call spread, the unlimited risk profile of a Short call disappears.
Introduction to Option Spreads Primer - Part III
21:27
+ ALL FOUR OPTION SPREAD TRADES
5 lectures 01:52:44
Live Bull Call spread on IBM. The outlook for IBM was determined by Chart analysis and suitable strike prices and expiry series chosen for the trade. 
IBM Bull Call Trade - Live Trade, Rationale, Adjustments, Exit Bull Call spread
27:01
Heavy technical analysis on the AMZN Bear call trade results in entering the trade above the resistance point for AMZN. 
AMZN Bear Call Trade -Live Trade, Rationale, Adjustments, Exit
25:11
Trade entry considerations for the NFLX Bear Put trade.
NFLX Bear Put trade - Live Trade, Rationale, Adjustments, Exit
29:46
The GOOG Bull Put trade is a play on Probability as well as the fact that GOOG has bounced off its support zone.
GOOG Bull Put trade - Live Trade, Rationale, Adjustments, Exit
24:22
This concludes the course on Options spreads.
CONCLUSION OF OPTION SPREADS
06:24
Options spreads Quiz
10 questions
+ CREDIT SPREAD SURGERY - Bear Call and Bull Put Mastery (Selection Criteria)
7 lectures 52:09
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.
INTRODUCTION - Advanced Credit Spread Surgery
06:11
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.
Bear Call versus Bull Put
12:37
Choosing the right expiry series is the first step to constructing an efficient credit spread.
Optimal Expiry series
09:33
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.
Optimal strike price selection
09:02
What width of the spread gives you the edge and what are its drawbacks.
Spread width, Premiums and margins
07:36
Which credit spread do you choose and why.
Technical analysis for optimal trade entry
02:20
Last but not least - have you taken into consideration the volatility environment. This could make or break the trade. 
Volatility considerations
04:50
+ LIVE BEAR CALL TRADE MANAGEMENT (Netflix and Linkedin)
10 lectures 01:05:00
Trade setup for 2 credit spreads - Netflix and Linkedin.
Bear Call Trade setup (NFLX and LNKD)
05:11
The Linkedin trade starts to go against us. What is the adjustment point and why. And what is the nature of the adjustment.
Adjustment 1 for Linkedin (LNKD)
07:48
The first adjustment on the Netflix trade - the goal is to eke out small returns that can add up.
Adjustment 1 for Netflix (NFLX)
07:17
Linkedin continues to move against us. This is what we wanted, and results in the second adjustment.
Adjustment 2 for Linkedin (LNKD)
06:08
The Netflix trade is choppy - but we are in control.
Adjustment 2 for Netflix (NFLX)
06:16
Linkedin is very bullish - and adds pressure on the trade. The goal is to get back to breakeven.
Adjustment 3 for Linkedin (LNKD)
06:51
A good exit for Netflix, with a 11% return in 2 weeks.
Trade exit for Netflix (NFLX)
05:45
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.
Trade exit for Linkedin (LNKD)
03:56
This lecture is a wrap-up of the course highlighting all the important points of "monthly income strategies". 
CONCLUSION of ADVANCED CREDIT SPREADS
08:38
Credit spreads Quiz
5 questions
BONUS LECTURE - DONT MISS !!
07:10