Buy Debit Spreads For Less Than Intrinsic Value

  Рет қаралды 43,685

tastylive

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Күн бұрын

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Пікірлер: 11
@sanketsawant7475
@sanketsawant7475 6 жыл бұрын
Again it's all abt risk reward ratio. If u go closer strike to spot to sell, to get benefited of positive theta bt your profit will be less compared to deeper otm option to sell
@thehoopscoop
@thehoopscoop 8 жыл бұрын
genius! never thought about debit spreads this way!!!
@yongb.1618
@yongb.1618 7 жыл бұрын
thanks great idea
@memeboooiiii
@memeboooiiii 8 жыл бұрын
nice vid
@DepthWish
@DepthWish Жыл бұрын
Nice tricks!!
@50tigres79
@50tigres79 5 жыл бұрын
Does this idea work for Credit spread?
@tastyliveshow
@tastyliveshow 5 жыл бұрын
No - credit spreads are already purely extrinsic value, so there is no intrinsic value to offset.
@G-y_m
@G-y_m 3 жыл бұрын
So risking 480 to profit 20 in the first example?
@chaz72987
@chaz72987 2 жыл бұрын
even worse risking $400 to make $10 in the second
@AS-bm6vs
@AS-bm6vs 4 жыл бұрын
what if after buying long call vertical spread , later then i received assignment on my short call component , could that happen ? what would be the impact of that on my trade ?
@tastyliveshow
@tastyliveshow 4 жыл бұрын
Yes that could happen - the risk profile of the trade doesn't change - just the buying power would increase as you'd have 100 short shares of stock. This is rare though, and you can gauge assignment risk by looking at extrinsic value in the ITM short call - the less extrinsic value there is, the higher your risk of assignment is.
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