Beginner's Options Trading | Vertical Spreads



Tony Battista teaches Katie options trading from the very beginning! BAT explains to Katie the difference between Credit & Debit Vertical Spreads and what an ETF is. ======== tastytrade.com ======== Finally a financial network for traders, built by traders. Hosted by Tom Sosnoff and Tony Battista tastytrade is a real financial network with 8 hours of live programming five days a week during market hours. Tune in and learn how to trade options successfully and make the most of your investments! http://goo.gl/EaF69C Subscribe to our YouTube channel: http://goo.gl/Szl24S Watch tastytrade LIVE daily Monday-Friday 7am-3pmCT: http://goo.gl/EaF69C Download our mobile app, Bob the Trader: http://goo.gl/zgIyco Follow tastytrade on Twitter: https://twitter.com/tastytrade Become a fan of tastytrade on Facebook: https://www.facebook.com/tastytrade Follow tastytrade on Pinterest: http://www.pinterest.com/tastytrade/

Comments

  1. Any chance you can post some trades on Verified Investing? That website has a great platform where users can follow your live trades.
  2. can you sell in low IV ,expecting the IV won't move at all before expiration?
  3. When the market is as tough as what we have experienced in the last year....everything is difficult. Even selling contracts with a high probability of profit has more risks than be calculated or factored into the probability of profit. Getting blown up in trade isn't fun....especially when you take in smaller profits because of higher probability of profit. It's no fun when you think you have mitigated your risk and you still wind up getting blown up. These guys are great and give great advice.....but if you can't take a few punches in the nose, don't step in the ring!
  4. 1) Are we in a good market to sell credit spreads? ( I am having a hard time finding good etfs to trade.) I have an small account .
    2) I know the higher the provability the higher the risk. But it makes it impossible to grow an small account what is the best way to grow an small account?
    3) why most of the high provability trades have so low delta .1 .2... ( %80) I was thought that if it does have less than .3 than not to do a credit spread because is to low.
    4) what does it mean when theta is at 0 in the option chain-
    5) should I trade indices like RUT, SPX and the big names?
    I usually like to do credit spreads on etfs with ( 30) to expiration and I am at lost at this point since its so hard to put a 3 contract vertical trade since the credit is so low and the commission is so high. So far I have been profitable and I would like to make a career out of this but I am having a hard time . Please help me !!
    Thank you!
  5. How Do I get learning like this?
  6. A trading class with Fonzie, awesome!!!!
  7. Hi, Trading Options - Great Question! We typically stick to our 45 DTE as it allows us to be in the sweet spot of premium decay. Additionally, the probabilities play out better in this longer term with less risk of binary moves, while allowing us to manage winning trades. 
  8. Great Video.  I have a question.  When selling a put spread, is it more beneficial to shorten the expiration(maybe a weekly) as oppose to collecting more premium?
  9. hi TT, love the show. If we have a 30% chance of $70 profit and a 70% chance of a $30 loss, then after fee's, we lose over time. Can you explain the MATHS behind how an options trader can profit from vertical spreads please? is it an expectation of IV reduction or something else? Thanks.
  10. Hi guys, ive been looking for a demo account to try out my options trading skills, mind if you guys can recommend me a legitimate demo platform?.. Thanks and keep up with the great videos :D
  11. This show is such a breath of fresh air into the stodgy idiotic, pedantic finical shows on TV and the internet. Great job. Don't make this too easy. The general public will flatten out the market.
  12. great video
  13. I liked your video on vertical spreads.  I have done a few of these myself.  For selling a Put you used a credit of .27 for a $1 spread.  And then risk .73 to make .27. As you say these gives you 73% prob of success.  The ratio of risk/reward = 2.7 to 1 or risking $3 to make $1.  So if I wanted to sell 5 contracts, my risk is 385 dollars to make 135 dollars.  My question is this: why would one want to risk $3 to $1?  Why no use a R/R ratio around 1 to 1?
  14. I'm watching all the tasty trade videos; and very slowly, I'm starting to grasp some of the lingo/jargon and technical terms but I am having trouble with all the abbreviations and what they mean.  Should I learn what all the technical terms and jargon means or is it something that I can learn as I go along on my way to learning how to trade?  
  15. Hi Andrew! Check out our site! We have a ton of content for novice options traders!
  16. do you guys mentor or teach - please post a link for a sign up thanks - i need to get my feet wet on this im 23 years old :D
  17. this is great stuff guys. fun team.
  18. Great show by the way.
  19. Is Tan year long, likes to trade on the Throne...lol. Awesome!


Additional Information:

Visibility: 75031

Duration: 15m 49s

Rating: 293