Trading Options: Bull Call Spread (Vertical Spread Strategy)

Trading Options: Bull Call Spread (Vertical Spread Strategy) ★ SUMMARY ★ Hey! It’s Sasha Evdakov founder of Rise2Learn and in this video I want to share with you how to trade options more specifically, the vertical spread. The vertical spreads are fantastic option spreads to trade when you're looking to trade out larger dollar stocks because it allows you to use less capital for trading those bigger stock. First I want to show you the diagram behind what it looks like in a simplified version and i want to show you on the charts exactly what you're looking for. So before we get into them vertical spread i want to talk about the regular call spread first of this is called a profit picture if you've never seen one before and a regular call spread you have one call that you're purchasing and you're looking for a directional bet to the upside. Posted at: http://tradersfly.com/2014/03/option-strategies-bull-call-spread-vertical-spread-strategy/ ★ SHARE THIS VIDEO ★ https://youtu.be/r5J9jqT7W00 ★ SUBSCRIBE TO MY YOUTUBE: ★ http://bit.ly/addtradersfly ★ ABOUT TRADERSFLY ★ TradersFly is a place where I enjoy sharing my knowledge and experience about the stock market, trading, and investing. Stock trading can be a brutal industry especially if you are new. Watch my free educational training videos to avoid making large mistakes and to just continue to get better. Stock trading and investing is a long journey - it doesn't happen overnight. If you are interested to share some insight or contribute to the community we'd love to have you subscribe and join us! FREE 15 DAY TRIAL TO THE CRITICAL CHARTS -- http://bit.ly/charts15 GET THE NEWSLETTER -- http://bit.ly/stocknewsletter STOCK TRADING COURSES: -- http://tradersfly.com/courses/ STOCK TRADING BOOKS: -- http://tradersfly.com/books/ WEBSITES: -- http://rise2learn.com -- http://criticalcharts.com -- http://investinghelpdesk.com -- http://tradersfly.com -- http://backstageincome.com -- http://sashaevdakov.com SOCIAL MEDIA: -- http://twitter.com/criticalcharts/ -- http://facebook.com/criticalcharts/ MY YOUTUBE CHANNELS: -- TradersFly: http://bit.ly/tradersfly -- BackstageIncome: http://bit.ly/backstageincome

Comments

1. +Sasha Evdakov
   
   Very clear explanation, thank you.
2. So when selling a put or selling a call, I assume I need to actually own the underlying shares?
3. Why can't you do a bull call spread where the long and short are both in the money? Is it because 0 option interest or volume?
4. What platform is this?
5. how about Implied Volatility?
6. Would trading the two single calls cost the same as trading them together as a vertical spread?
7. How do you close a vertical spread early or close one or two contracts out of a group of contracts using ThinkorSwim?
8. What happens if the contract reaches expiration?
9. Sasha can i buy and sell a call within 10 minutes ? If desired strike price is reached ? Do i need to wait untill someone buy my option ? it's the same like stock trading?
10. One of my fears of selling a call or put is to get called or to get assigned. What is the likelihood of those events happening from selling options?
11. Do we necessary have to exit the position we took or what if it expires can u explain that too, it will be good.
12. hey very nice and helpful video can you please tell me the name of the trading platform or software you are using in the video ? or suggest me some free platforms to practice derivatives on? p.s - have subscribed keep up the good work !
13. When putting on a Bull or Bear Call Spread are you required to own at least 100 shares for the call you wrote? Also, when putting on a Bull or Bear Put Spread, should you have enough money in your account to purchase shares for the put you sold?
14. amazing video again. sasha can you please tell me if skew effects vertical spreads and how to avoid it?
15. I'm a bit confused. a vertical call spread means that you will buy one call and sell one call. I get that. However how is your risk defined if the stock crashes to zero? i mean, when you buy a call, i thought you can only buy the stock if it goes above a certain strike price, not below...right(which would be buying a protective put).
    
    also, is it okay to just let the options expire?
16. when you sell the out of the money call instantaneously you receive a premium for selling the contract. The buyer looses money daily as a result of the contracts theta decay. How are you earning additional income from the theta decay, when you already received the premium when you sold the option :s?
17. A bullish call spread is bullish on direction. Is it also bullish on volatility?
18. Which software you are using for payoff simulation ????? Thanks in advance....
19. Can you describe SELLING a deep in the money trade? Can that work?
20. I took a udemy course on a different subject by you. I can't remember what it was but it was not about Options.