The Vertical Spread Options Strategies (The ULTIMATE In-Depth Guide)
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 Published On Sep 18, 2020

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The vertical spread options strategies are at the core of EVERY complex options strategy. If you can master these, you will understand 80% of options trading strategies.

In this video, you will learn to master the vertical spread strategies through in-depth explanations, trade setup visualizations, expiration risk graphs, and visualized trade performance visualizations using real option data.

I'm also going to teach you more advanced topics, such as understanding how a vertical spread's profitability relates to the amount of time to expiration, time decay, and changes in implied volatility.

My hope is that with this video, you can develop a deep understanding of the four vertical spread strategies, and make a gigantic leap forward in your options trading expertise. Not only will you learn the basics and see examples of how the strategies work, but you will also learn to understand vertical spread mechanics like an options trading expert.

Video Timestamps

0:00 - Introduction
0:48 - Video Prerequisites
1:14 - What is a Vertical Spread?
2:21 - Why Trade a Vertical Spread? (Single Options vs. Spreads)
6:05 - The Bull Call Spread (Call Debit Spread)
8:23 - Bull Call Spread Expiration Risk Graph
10:41 - Why is a Vertical Spread's Max Value the Width of the Strikes?
11:49 - Bull Call Spread Trade Example (Real Data Visualization)
15:09 - How to Close a Call Debit Spread
16:14 - The Bull Put Spread (Put Credit Spread)
18:46 - Bull Put Spread Expiration Risk Graph
20:33 - Bull Put Spread Trade Example (Real Data Visualization)
23:01 - The Bear Call Spread (Call Credit Spread)
24:42 - Bear Call Spread Expiration Risk Graph
26:13 - Bear Call Spread Trade Example (Real Data Visualization)
27:07 - How to Close a Call Credit Spread
28:29 - The Bear Put Spread (Put Debit Spread)
29:45 - Bear Put Spread Expiration Risk Graph
31:19 - Bear Put Spread Trade Example (Real Data Visualization)
35:14 - Vertical Spread Profitability vs. Time to Expiration/Time Decay
40:56 - Using tastyworks to Compare Vertical Spread Prices vs. Time to Expiration
43:31 - Vertical Spread Profitability vs. Changes in Implied Volatility
44:34 - You Want Implied Volatility to DECREASE When...
46:24 - What a Decrease in IV Means for Vertical Spread Pricing
49:31 - The MYTH About Debit Spreads vs. Credit Spreads and Implied Volatility
50:47 - You ONLY Want Implied Volatility to INCREASE When...
52:31 - How to Select the Right Strategy (Some Guidelines)
54:08 - Using tastyworks to Compare Debit Spread vs. Credit Spread Setups/Pricing
1:02:22 - What Happens to Vertical Spreads at Expiration?
1:03:18 - Fully In-The-Money Call Spread at Expiration (Example)
1:05:17 - Partially In-The-Money Spread at Expiration
1:07:13 - Early Assignment Risk With Vertical Spreads?
1:08:26 - Debit Spread Early Assignment Risk: Why You Should Close the Trade
1:12:19 - THANK YOU! Please Subscribe/Like!

VIDEO PDF: https://www.dropbox.com/s/8539whmkhsp...

Thank you for watching! I hope you learned a lot in this video.

Questions? Comments? Suggestions? Please leave me a comment down below and I'll get back to you when possible.

==== ADDITIONAL RESOURCES / VIDEOS MENTIONED ====
Options Trading for Beginners (The ULTIMATE In-Depth Guide):    • Options Trading for Beginners (The UL...  
Covered Calls for Beginners Video:    • Covered Calls for Beginners 2023  
Vertical Spreads (Basics for Beginners): https://www.projectfinance.com/vertic...
Lost $30,000 on a $1-Wide Credit Spread (ALWAYS Close Before Expiration):    • Lost $30,000 on a $1-Wide Credit Spre...   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.

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