Player FM 앱으로 오프라인으로 전환하세요!
125: What the Books Don’t Teach About Vertical Spreads
Manage episode 435790539 series 3383463
Updated options trading research now available in the SPX Income Masterclass geared towards beginners with small accounts and for those who don't want to watch the market all day. The strategies included in this Lifetime Access and Updates course are mechanical in nature and lend themselves to automated trading which is also discussed in the course.
Here's the link to the SPX Income Masterclass:
https://www.stockmarketoptionstrading.net/spaces/4688450
In this episode, I discuss something about vertical spreads that options education books typically don't include. We'll explore comparing buying a single call option vs. buying a long call spread aka. bull put spread through the lens of trading strategy.
The primary point is that there is a level of consistency with vertical spreads over single options in that the cost of the spread is relatively the same over time whereas the cost of the call can vary due to volatility. This can make it harder to allocate a consistent amount of capital to a strategy.
The downside with vertical debit spreads of course is that you gaining consistency but at the cost of capping your upside gains if the market moves heavily in your favor.
Want to connect with myself? Find me on LinkedIn or X:
Eric O'Rourke: https://www.linkedin.com/in/jericorourke/
Eric O'Rourke: https://twitter.com/OptionAssassin
After that, join other listeners at https://StockMarketOptionsTrading.net and join the community for free right now where there are daily posts with clues to the where the market may be headed next.
Also on the website, Alpha Traders Club is where I host my SPX Live Chat each day for trading SPX weekly options. We focus on the premarket data and levels, technical analysis, and options flow for trading high probability trades for weekly income.
Here's the link: https://www.stockmarketoptionstrading.net/spaces/12282222
Disclaimer: This podcast is for informational and educational purposes only and should not be considered financial advice.
131 에피소드
Manage episode 435790539 series 3383463
Updated options trading research now available in the SPX Income Masterclass geared towards beginners with small accounts and for those who don't want to watch the market all day. The strategies included in this Lifetime Access and Updates course are mechanical in nature and lend themselves to automated trading which is also discussed in the course.
Here's the link to the SPX Income Masterclass:
https://www.stockmarketoptionstrading.net/spaces/4688450
In this episode, I discuss something about vertical spreads that options education books typically don't include. We'll explore comparing buying a single call option vs. buying a long call spread aka. bull put spread through the lens of trading strategy.
The primary point is that there is a level of consistency with vertical spreads over single options in that the cost of the spread is relatively the same over time whereas the cost of the call can vary due to volatility. This can make it harder to allocate a consistent amount of capital to a strategy.
The downside with vertical debit spreads of course is that you gaining consistency but at the cost of capping your upside gains if the market moves heavily in your favor.
Want to connect with myself? Find me on LinkedIn or X:
Eric O'Rourke: https://www.linkedin.com/in/jericorourke/
Eric O'Rourke: https://twitter.com/OptionAssassin
After that, join other listeners at https://StockMarketOptionsTrading.net and join the community for free right now where there are daily posts with clues to the where the market may be headed next.
Also on the website, Alpha Traders Club is where I host my SPX Live Chat each day for trading SPX weekly options. We focus on the premarket data and levels, technical analysis, and options flow for trading high probability trades for weekly income.
Here's the link: https://www.stockmarketoptionstrading.net/spaces/12282222
Disclaimer: This podcast is for informational and educational purposes only and should not be considered financial advice.
131 에피소드
모든 에피소드
×플레이어 FM에 오신것을 환영합니다!
플레이어 FM은 웹에서 고품질 팟캐스트를 검색하여 지금 바로 즐길 수 있도록 합니다. 최고의 팟캐스트 앱이며 Android, iPhone 및 웹에서도 작동합니다. 장치 간 구독 동기화를 위해 가입하세요.