What Options Traders MUST KNOW About Vertical Spreads

Рет қаралды 29,555

Күн бұрын

✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: geni.us/options-trading-pdf
💰 Get up to $3,000 when you open and fund your first tastytrade brokerage account: geni.us/tastytrade
🔥 Learn data-driven options strategies: optionsforbeginners.teachable...
Master the most essential vertical spread concepts in this video and level up your options trading IQ.
Many websites teach vertical spreads half correctly, making statements like "debit spreads are long volatility trades," or, "credit spreads are short volatility trades."
These statements are half-true. There are scenarios where debit spreads are short volatility trades and credit spreads are long volatility trades.
In this video, you'll learn to master the vertical spread options strategies by understanding how debit spreads and credit spreads perform in specific scenarios.
0:00 Intro
0:52 Vertical Spread Theta & Vega vs. Stock Price
2:49 Vertical Spreads vs. Implied Volatility
6:09 tastyworks $200 Free Stock Promo
7:23 Vertical Spreads vs. Time Decay
10:01 Bear Put Spread vs. Changing Implied Volatility
13:50 Vertical Spread Options Strategies for Beginners
Leave me a comment if you have any questions or feedback!
=== Recommended Videos ===
➥ Options Trading for Beginners: • Options Trading for Be...
➥ Vertical Spreads for Beginners: • The Vertical Spread Op...
➥ How I Buy Bitcoin Daily: geni.us/swanbitcoin tastytrade, Inc. (“tastytrade”) has entered into a Marketing Agreement with Project Finance(Marketing Agent”) whereby tastytrade pays compensation to Marketing Agent to recommend tastytrade’ brokerage services. The existence of this Marketing Agreement should not be deemed as an endorsement or recommendation of Marketing Agent by tastytrade and/or any of its affiliated companies. Neither tastytrade nor any of its affiliated companies is responsible for the privacy practices of Marketing Agent or this website. tastytrade does not warrant the accuracy or content of the products or services offered by Marketing Agent or this website. Marketing Agent is independent and is not an affiliate of tastytrade.

Пікірлер: 62

@projectfinance 2 жыл бұрын

I enjoyed making this video! I hope you liked it! Let me know what you think. I'd appreciate your feedback. Also, I just moved so don't mind my simple studio! It's about to get a bit more vibrant! -Chris

@Nice-Y 2 жыл бұрын

Thanks to your long Iron Condor video(s), I've been doing ok this year so far 👍 I must've watched all your spreads, butterflies, condors, and greeks at least 10 times each by now

@zo9fg 2 жыл бұрын

I really like these in depth advanced concepts for the most basic option strategies, pls keep em coming!

@projectfinance 2 жыл бұрын

Will do! Many more to come! Let me know what you think about the side-by-side editing style in this video. It's a new format I'm trying.

@opadrian4814 2 жыл бұрын

@@projectfinance the edit is perfect! Very simple to understand and very clear, the format is very elegant

@rd-tk6js 7 күн бұрын

well explained, thanks !

@jimjames5612 2 ай бұрын

Excellent Presentation, Thank You, much appreciated !

@hareshramroop943 2 жыл бұрын

Amazing video, Chris!!! Thank you for sharing your vast experience in the options space! Also, I like the Meditations Marcus Aurelius book behind you! 👍👍👍

@projectfinance 2 жыл бұрын

Thank you Haresh! Haha I was waiting to see how long it would take for someone to notice that book! You are the first! The most life wisdom I've ever seen packed into a book.

@Not_Lactoselntolerant 5 ай бұрын

There's so much value in all your videos it's unbelievable. Thank you for all the hard work you put into these videos. Sending you a lot of good karma. You deserve all the gains from option trading!

@prasantadas3589 2 жыл бұрын

hey bro...i have gained in depth knowledge through your option series which helped me a lot in my trading journey....thank you a lot...love from INDIA

@projectfinance 2 жыл бұрын

Thank you for watching! Any topics you'd like to see?

@susielu3769 2 жыл бұрын

I watched all of your videos! Thanks for your good work!

@projectfinance 2 жыл бұрын

Thanks for watching Susie! I appreciate it.

@johndegoldi3065 2 жыл бұрын

Chris, great to have you back talking options mate. Keep it up, looking forward to more vids. Regards JD

@projectfinance 2 жыл бұрын

Thank you JD! Feels good to be producing again.

@jeffmerver2444 2 жыл бұрын

Keep these coming bro, your videos have been instrumental for me. Amazing content

@projectfinance 2 жыл бұрын

Thanks so much Jeff! More to come! Any guides you want to see?

@vac2695 2 жыл бұрын

Bro, what strategy you are doing for leap or any other to be profitable? Mkt has become so much boring these days.

@enricosaccheggiani3192 Ай бұрын

Great video thanks

@kathleentonn-oliver8836 2 ай бұрын

Thanks for wearing a shirt; looks very professional. I hated thinking you couldn't afford one.

@famjamfisch 2 жыл бұрын

Iced coffee all day! Great video, Chris! Cant wait for the next one.

@projectfinance 2 жыл бұрын

Oh yeah! Just made a fresh batch of cold brew I'm about to enjoy for the first time! Thanks for watching/commenting!

@milenao4455 Жыл бұрын

Thanks for your amazing videos. Very interesting to see how theta and vega can flip, and how we can actually benefit from the passage of time !

@projectfinance Жыл бұрын

✅ New to options trading? Master the essential options trading concepts with the FREE Options Trading for Beginners PDF and email course: geni.us/options-trading-pdf

@rajpap700 2 жыл бұрын

Thank you so much for all the knowledge man! Good vybes from Trinidad🙏🏻

@projectfinance 2 жыл бұрын

You're welcome and thank you for watching! I appreciate it!

@amg_0302 2 жыл бұрын

This was pretty mind blowing.

@projectfinance 2 жыл бұрын

Thanks Anthony!

@DJ11o1 2 жыл бұрын

Meditations by Marcus Aurelius? A man of culture I see. Great video as always!

@projectfinance 2 жыл бұрын

Great eye! One of the best books I've ever read! Thanks for watching and leaving feedback 🙏

@ricardoschossland7356 2 жыл бұрын

Hey Chris, thanks for the video! I was just wondering if you have been buying leaps /stocks on MSTR now that the prices are so low? Thanks!

@projectfinance 2 жыл бұрын

I've been scaling into long stock in my stock/options accounts but the cleanest play is to just buy BTC which I have been doing. If you're confined to brokerage accounts (perhaps with an IRA) and want to play BTC, MSTR is one of the best ways to get exposure until we have a spot BTC ETF. Then, the spot BTC ETF will be far superior to holding MSTR because you won't have to have faith in MSTR as a business or the company's intent on holding their coins.

@Sagardeepthinks Жыл бұрын

excellent explanation SIR.

@projectfinance Жыл бұрын

Thank you!

@caonabocolon1421 2 жыл бұрын

I love it….

@gonzo1483 2 жыл бұрын

HI Chris, I remember a video where you tested cutting losses when VIX was above 30 but I can't find it. I would like to revisit it if it's still there. Thanks!

@projectfinance 2 жыл бұрын

Hmm it's definitely an older video, probably 2019/2020. I'll look for it.

@gonzo1483 2 жыл бұрын

Thanks!

@gonzo1483 2 жыл бұрын

@@projectfinance Intuitively, do you believe it's suboptimal to have a VIX-based threshold? A drawback I see is getting whipsawed with exists and re-entries. But it also seems there would be benefits with tail-risk and increasing one's size..

@babubabu-zw2yi 2 жыл бұрын

Chris, how spread will benefit when IV decreases from 30% to 20% at 4:39 ? Vega is positive for long call and decrease should minus the spread price . Please explain more here

@projectfinance 2 жыл бұрын

Because when the spread becomes in-the-money, the long call has mostly intrinsic value which is immune to changes in IV. When being at the short call's strike, the short call will have more extrinsic value than the long call, and decreases in IV (decreases in extrinsic value) cause the short call to lose more value than the long call, causing an increase in the value of the spread.

@babubabu-zw2yi 2 жыл бұрын

@@projectfinance Got it!!.Thank you!!

@mojtaba13 2 жыл бұрын

Does Tastyworks trades goes through citadels, in house inventory and dark pools similar to other cheaper brokers?

@projectfinance 2 жыл бұрын

I believe most popular brokerage firms sell their order flow to high frequency trading firms, but that's what allows brokers to charge low commissions. I'm not an expert in that field though, I don't have experience working at a HFT firm or brokerage department that handles that side of the business.

@hn99561 2 жыл бұрын

is this influenced less by a wider spread

@projectfinance 2 жыл бұрын

Wider spreads will generally have more exposure to time decay and changes in IV because they will act more like naked long/short options. Depends on the specific spread structure though.

@josephmitchell6340 2 жыл бұрын

Finally he's back with the options bombs

@projectfinance 2 жыл бұрын

I'm thinking I'm back!

@mcgch46e80 2 жыл бұрын

Discuss options trading: pro's and cons with Warren Redlich.

@Xektt 2 жыл бұрын

Quick question: Can you please recommend a tax office/tax company that focuses on day traders & trader status?

@bonzeno85 2 жыл бұрын

Ur so awesome.

@projectfinance 2 жыл бұрын

Thanks Anthony! You are too!

@Jnf458 2 жыл бұрын

So much information in 13 min, maybe after watching it 10x it will sink in

@projectfinance 2 жыл бұрын

Definitely take the time to absorb it. Once you grasp the concepts then you'll be prepared to understand how all your vertical spread positions will perform vs. time and IV depending on where the stock is.

@bballgtr Жыл бұрын

Don't ever use the phrase "to make a long story short" -- you (nor anyone) ever do make the story short- thus you lose confidence with the listener.

@projectfinance Жыл бұрын

Good point. It does indicate an opportunity to be more concise.

@Dnyink 2 жыл бұрын

Please don't turn into a generic youtuber Chris

@projectfinance 2 жыл бұрын

What do you mean?

@Dnyink 2 жыл бұрын

@@projectfinance personally I watch your content time and again because is super high quality, and I've learned tons from it but also because in my experience with your channel, its all about the informátion, and not the youtuber, which for me is awsome. And what I mean by generic youtuber, is that type of youtuber whose content itself is not good enough to keep viewrs coming back and because of that they need the catchy tittle and emoji face😱. Thats not your case, I believe your channels support comes from the palpable value you provide, rather than the style in which you do it. All of that to say I'm a huge fan and have nothing but appreciation for your content and would hate to see it suffer because of a change in style. Great video as always

@projectfinance 2 жыл бұрын

@@Dnyink Thanks for the in-depth reply! I appreciate it! Regarding the title and thumbnail, I don't *want* to make exaggerated faces like this, but it's what works on KZfaq (most of the time), which is why KZfaqrs do it. If you are going to spend time making a video that you think is valuable and you use a normal thumbnail that gets a 2% click rate vs. making an exaggerated face that gets a 5% click rate, doesn't it make sense to go for it with the second version? As long as the content backs up the title, all is well! I appreciate you watching my videos and I can't wait to publish more stuff to hopefully help you and others learn more!