How to Make Money Trading Options - The Vertical Spread



www.SkyViewTrading.com The Short Vertical Spread (aka Vertical Credit Spread) is the most basic options trading spread. A Short Vertical Call Spread is a bearish/neutral strategy that consists of a Short Call and a Long Call… And a Vertical Put Spread is a bullish/neutral strategy that consists of a Short Put and Long Put. Use this option spreads strategy to sell option time premium with very little risk and capital. Quit letting time decay ruin your trades and start letting it work in your favor. You can trade this strategy with an account size of just 2k while allocating very little capital to each trade. Watch this video to fully understand how this strategy works and how to trade it. Also, make sure to sign up for our FREE 3 Video Lesson Series at www.skyviewtrading.com! Adam Thomas Sky View Trading option spreads strategies option strategies Vertical Spread Option Strategy Vertical Credit Spread Iron Condor How To Trade a Vertical Spread option trading basics option time decay consistent options income

Comments

  1. xfs
  2. xfs
  3. Short strike price plus entry price equals break even? What's the short strike price? It's the terminology being used that is somewhat difficult to follow and can add to the confusion of a newbie.
  4. Totally confused at around 5:40. How do you make $80 if options expire at 101? Don't you lose both on the premium you paid for the call you bought which ended OTM plus losing $100 on the $1.00 over the call you sold?
  5. Wow its a very nice video. Its helps me a lot on my option trading. Its very easy to understand. But its also very important to trade with a good broker to earn a lot of money without facing any difficulties. For that i always prefer lxmarkets broker. They are very reliable and trustworthy.
  6. Do you sell to ope/close or Auto and how to close before expiration? great job
  7. what would happen if the options were exercised?
  8. Great video man! Which software do you use for making this videos?
  9. Hi, great videos! What platform is this filmed on?
  10. Awesome video
  11. Thank you, Sky View.....great info/lesson....way to go.
  12. My brain is on fire haha
  13. How do you compute the math for the 130 share price example? Specifically the loss of 2700 and gain of 2380.
  14. Can I do options with any account like easyTrader?
  15. If you consider little long term period nobody get benefited from this type of trading except broker.
  16. how could i Contact U
    what is Ur Email Adress Or Any Othet Source
  17. There is a general question that hovers in my head whenever I think about option trading puts and calls: On the last day before expiry I need to find a buyer for an in the money option, right? That means someone has to buy this off of me. An expample: I have bought PUT options on SPY and its in the money a week before expiry and SPY is still on the way down. I want to wait as long as I can to max my profit on the trade, right? Comes the last day and I have to now sell to take my profit. Am I not now at the mercy of holders of SPY to buy my put option so they can sell at my strike price?
    What is the safest way to exit such a position to ensure success?

    And a question about this vid. Are the expamples you give here only valid when you hold the underlying stock? You are selling puts on NFLX. You do not make it clear in your video but I am assuming that you must hold NFLX stock to do this. Am I right?
  18. Seems like vertical spreads should just be used as security. The reduced risk should be directly proportional to the amount you stand to gain.
  19. terrific, i loved it
  20. Excellent explanation. The only thing I would have added to further show the power of vertical spreads is to state the potential ROI for that winning trade with 1st example --- ie.. u sold a 100/105 vertical call spread for $180 credit / $320 investment. Multiple ways to win....If the stock tanked, remain flat or even went up a bit by a few points, max profits are captured for a 55% ROI. That is HUGE! U can't make ROIs like that trading stocks outright.


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Duration: 9m 52s

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