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When trading vertical spreads, choosing an expiration cycle is somewhat strategic.
With so many expirations to choose from, which ones should you trade?
In this video, you’ll learn how short-term and long-term vertical spreads compare in terms of P/L when the stock moves to similar prices.
More specifically, you’ll learn that shorter-term vertical spreads can hit high profit levels more quickly when the stock price moves favorably. However, when the stock price moves against you, a short-term vertical spread will suffer larger losses than a longer-term vertical spread.
We’ll go through a few live examples using AAPL put spreads to demonstrate the concepts discussed in the video.
After watching this video, you’ll have a firm understanding of how selecting a short-term or long-term expiration cycle can make a difference in strategy performance.
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