In episode #2 of
In episode #2 of Tastytrade's Option Crash Course: Strategy Management, we move into another one of the most popular defined-risk option strategies: the Long Vertical Spread. While the Short Vertical Spread that we saw in the last episode is a great short premium strategy that puts the probabilities in your favor, the Long Vertical Spread is a good long premium strategy that allows you take a directional shot on a stock, without having to absorb a ton of negative theta from that position.
======== tastytrade.com ========
tastytrade is a real financial network, producing 8 hours of live programming every weekday, Monday - Friday. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 50 original segments, and over 20 personalities, we’ll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. http://ow.ly/EbzUU
Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1
Always a pleasure watching you explain thing so well! Appreciated Jim.
Just yolo gme
So you lose 100% of premium paid without keeping a stop loss if it’s not going in our favor?
Thanks Doc Jim! I will set the win close order for 50% of max profit as you said though rather than credit received as the slide used said :-). Thanks again, keep it up and keep smiling!
"Do nothing?" Ummmm...I've loved all your short teaching videos you have, but this one I would have to disagree. You can manage it by rolling it down and right, b/c the beauty of the spread is that while one leg is "dead" in the water, you have enough delta and, if done early enough, you don't have theta burn out your "whole candle" so to speak. They key is doing it at the right point (x days) before expiration. I have successfully taken certain losers, if I had done NOTHING--into winners. That's the beauty and flexibility of vertical spreads. Just as you wouldn't buy a luxury car w/o the wheels, why drive the options w/o it?