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Learn the vertical spread options strategies in this comprehensive 11-part video series!
In this video, we start with a basic introduction to vertical spreads.
A vertical spread is an options strategy that consists of one long option and one short option of the same time and in the same expiration cycle.
For example, buying a call option with a strike price of $100 and selling another call option with a strike price of $110 (same expiration cycle) would create a 100/110 bull call spread.
There are four vertical spread strategies. Two of them are considered debit spreads and two of them are considered credit spreads:
1. Bull Call Spread (call debit spread)
2. Bear Call Spread (call credit spread)
3. Bull Put Spread (put credit spread)
4. Bear Put Spread (put debit spread)
In this ultimate guide, you’ll learn:
– Exactly how to set up the four vertical spreads
– How each strategy makes or loses money
– How time decay and changes in implied volatility impact the profitability of each strategy
– How to select expiration cycles and strike prices when setting up each of the four spreads
– When to take profits and losses when trading verticals
The topics are covered in 11 videos, so be sure to watch every video to become a master of vertical spreads!
READ THE FULL GUIDE:
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Option Volatility and Pricing:
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