Understanding Debit vs Credit Spreads l Options Trading

Understanding Debit vs Credit Spreads l Options Trading - Which is better?

Рет қаралды 25,783

2 жыл бұрын

Join me, Tony Zhang, Chief Strategist of OptionsPlay & CNBC Contributor of Options Action as we take a deep dive into debit and credit vertical spreads to understand how they differ. Learn the best practices for each strategy and how to optimally manage the positions!
📈 Become an OptionsPlay member today! Access the OptionsPlay platform, All My Private Options Education Webinars, Exclusive Income Opportunity Reports, and More! www.optionsplay.com/
SLIDES: www.dropbox.com/s/hs8qy5l1wbw...
👉🏻Get our FREE Technical Analysis Guide: www.optionsplay.com/free-tech...
👍🏻Open a free TD account to start trading:
start.tdameritrade.com/welcom...
👍🏻Start trading with Tastyworks: www.optionsplay.com/tastyworks/
👉🏻💥CONNECT WITH ME:
Twitter: / optionsplay
Facebook: / optionsplay
LinkedIn: / optionsplay
💻 Email: info@optionsplay.com
Disclaimer: OptionsPlay LLC is not registered as a securities broker-dealer or advisor either with the U.S. Securities and Exchange Commission or with any state securities regulatory authority. OptionsPlay does not recommend the purchase of any stock, ETF, or advise on the suitability of any trade. The information and data contained in OptionsPlay was obtained from sources believed to be reliable, but accuracy is not guaranteed. Neither the information nor any opinion expressed, constitutes a recommendation to purchase or sell a security or to provide investment advice.

Пікірлер: 29

@tonydavis7088 2 жыл бұрын

Hey Tony, My name is Tony too and I just want to congratulate you on your new addition to your family first of all. Secondly, I thank you for your honest and straight forward style of teaching Options Trading. I thank you for not teaching in such a way of constantly talking about money and thousands of dollars that people can make if they do this as if to motivate them to hurry up and spend their money or to join Options Play the way the many scammers do. Your teaching videos are so full of details as if you are truly and honestly trying to help your viewers to get this information and become successful in life. Thank you again and I will be listening and trying my best to get this everyday. God bless you and your family. Sincerely, Tony Davis of Charlotte, N.C.

@gracechan5345 3 жыл бұрын

Thank You again! Tony! Great to watch you again this week!

@OptionsPlay 3 жыл бұрын

Thanks, Grace!

@SandpitCrew 3 жыл бұрын

Thank you for this, another premium content. Easy to understand and well explained.

@OptionsPlay 3 жыл бұрын

happy to hear that! Thanks for watching!

@venkateshramadhyani8149 3 жыл бұрын

I agree and always like to hear from Tony. I would also want to know more on the margin with the credit spreads.

@AM-yd5dt 3 жыл бұрын

Great content Tony especially your P&L simulator when putting in trades.... Learned something new about directional view (mild vs significant) when choosing debit vs credit spreads.... I was focusing on IV only thus far.... Great value added Tony.... Thank you

@410nikko6 2 жыл бұрын

I just found you not long ago...I really like the way you explain things..thnx much

@OptionsPlay 2 жыл бұрын

Thanks for your support!

@rosalinacilani5106 3 жыл бұрын

Another video that I couldn’t live without. I love your insight into everything. Thank you!

@OptionsPlay 3 жыл бұрын

Thank you so much!

@SolidBased 2 жыл бұрын

There’s stocks that rip everyday that’s why there’s more credit spread opportunities lol!! And why I prefer debit spreads!

@ray.d7054 3 жыл бұрын

Great explanation and demonstration Tony easy to understand and learn. Thank you, very helpful.

@OptionsPlay 3 жыл бұрын

Glad it was helpful!

@michaelb1544 2 жыл бұрын

Great stuff Tony! Is there a chance that although the greeks are similar, leading to expiration (4/5 days before expiration), assuming that the underlying is slightly out of the money in both cases, credit spreads (short call spread) will earn more money than an identical debit spread (long put spread), whereas at the end they will be equally profitable? it feels like in the latter the value of the shorted put is going to rise, eating into the profits seen from the long put, whereas in the former both will lose value?

@TheOptionsAlchemist Ай бұрын

You mentioned to get out of a credit spread when it reaches 21 days to expiration. What was the original DTE? 45 days? Also, do you have any videos on how to get a directional bias?

@passivedividendsoptions 2 жыл бұрын

Very informative video, I have used both in the past. And think they both can be great strategies to use. Just depends on environments, your risk tolerance & different styles as far as which ones could be better.

@kane99560 Жыл бұрын

great info...idk know if i see the purpose of debit spreads tho....if i think a stock will make a huge move i am just gonna flat out buy the calls. debit spreads feels like youre not sure about your conviction so youre capping your gains but minimizing your risks which for me kinda defeats the purpose...if i doubt the move i am not buying either. my 2 cents

@unawant1 3 жыл бұрын

i would sell a credit spread at support, not resistance, correct? You highlighted at 25:41 - to sell a credit spread at resistance & buy a debit spread at support? Did i hear that right? Are you looking at call or put? A Put Credit spread will be at support, a call credit spread at resistance, right?

@ucheakusobi6281 3 жыл бұрын

Can’t you buy ITM debit spreads for short term

@anandukanagaraj 2 жыл бұрын

Why credit spread strategy have to close the trade at 21 days?

@RichardHoltVen 5 ай бұрын

@scottogieva7728 2 жыл бұрын

I don't understand anyone, I want to know which one is best

@rktile8966 2 жыл бұрын

At 13:00 you talk about being break even at $14.50, you forgot to add the 54$ cost of contract. In reality you are not break even until $15.04

@johnliang7587 2 жыл бұрын

Sell Credit Spreads

@yatishanand1705 2 жыл бұрын

P Please p

@beck4218 Жыл бұрын

There is no difference between a credit and a debit spread. Long the 14/16 call spread + long the 14/16 put spread (debit) = a long $2 box. It's an arb. So a long cs = the short ps. So neither is better.