HomeОбразованиеRelated VideosMore From: Sky View Trading

How to Make Money Trading Options - The Vertical Spread

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www.SkyViewTrading.com The Short Vertical Spread (aka Vertical Credit Spread) is the most basic options trading spread. A Short Vertical Call Spread is a bearish/neutral strategy that consists of a Short Call and a Long Call… And a Vertical Put Spread is a bullish/neutral strategy that consists of a Short Put and Long Put. Use this option spreads strategy to sell option time premium with very little risk and capital. Quit letting time decay ruin your trades and start letting it work in your favor. You can trade this strategy with an account size of just 2k while allocating very little capital to each trade. Watch this video to fully understand how this strategy works and how to trade it. Also, make sure to sign up for our FREE 3 Video Lesson Series at www.skyviewtrading.com! Adam Thomas Sky View Trading option spreads strategies option strategies Vertical Spread Option Strategy Vertical Credit Spread Iron Condor How To Trade a Vertical Spread option trading basics option time decay consistent options income
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Text Comments (336)
Vladimir Putin (6 days ago)
thanks a lot
Israela Maccabee (11 days ago)
I'm a novice. I'd like to see a video in which it's taught how to set up an account, and how to test one trade without much risk. Even if I make $1, as long as I understand the concept, I'd be on the right track. This is a video for advanced traders.
bestoptionsvid thx
Judean Derby (22 days ago)
If I don't have permission to do credit spreads on Robinhood, can I buy/sell the calls/puts separately to create a credit spread anyway?
Quincy Birwood (26 days ago)
This is not completely true. What this video talks about is trading an index which is cash adjusted. If when selling a call spread on a stock and the price of the stock closes at expiration inside your spread (above the sold strike and below your protection), you have sold the stock at that strike price. The option then converts to stock and you are short the stock at that strike price. The cash for the sold stock goes into your account and the short shares are listed on your position statement. This can cause some heart palpitations the next market day when you have to clear the short stock. The real trouble begins if the stock price rockets higher if you don't have the cash to cover the difference from the price where you sold it. If you have any doubts, ask your broker what would happen in this scenario with a sold stock option closing in the money.
PunkJabi (29 days ago)
I am from the future. Netflix stock will go to 422 and then dump to 350 after earning. So you are good buying here.
Ben Karden (1 month ago)
The Best
khup lian (1 month ago)
do you have any broker you recommend?
KC T (1 month ago)
You are simply brilliant
Kenneth Ma (1 month ago)
"Very small chance." Today Jun 25 2018 NFLX at 384
Ray Huertas (1 month ago)
Which are the best trading platforms out there?
Naveen Manohar (1 month ago)
New trader still learning here. Thank you for the simple-to-understand videos. However, I have a question. It would be great if anyone can help me out here: In scenario 1, since the stock did not rise above the strike price, wouldn't both options technically be in the money?
Naveen Manohar (1 month ago)
In case anyone has the same doubt: For call options, they are ITM as long as the current market price (CMP) is greater than the strike price. In scenario 1, CMP is < 100; therefore, the call options of strike price of 100 would be OTM. While buying the call option would result in a loss, selling the same would have resulted in a profit.
Bice Delbosque (2 months ago)
*FIRST MILLION ROAD* always provide me right time signal to buy or sell
الف شكر لك أستاذ تحية وسلام من الجزائر
six6strings (2 months ago)
So what happens if the stock goes above the sell call strike price and the buyer wants to exercise their option? Should we assume we already have 100 shares to sell on our portfolio?
Mitch Zimmer (2 months ago)
great video. Crazy to think that NFLX went from 93 to 350 in two years...
Melanie Nguyen (2 months ago)
okay so on rh the med break wven is 152.55. and since I buy, I expect the price to go up. If my MED is go up more than 152.55 mean Im going to have more profit right?
Ramen Vermicelli (2 months ago)
Great videos for visual learners! You break down a complex process and make it understandable. Thank you!
András Erős-Fodor (2 months ago)
Netflix gone nuts
XBOXX ROCKSTARS (2 months ago)
it says on think or swim that when I try to trade this stategy it says it's illegal Why is that?
Brandon Bennett (2 months ago)
Write down all your questions and call TD Ameritrade at 800-672-2098 . They have been extremely helpful with explaining questions I've had on the Thinkorswim platform.
Kevin FrommFomm (2 months ago)
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Mike Arnold (3 months ago)
My question to you is how can you call guessing the stock market which as you put it a 50/50 gamble true in a bull market? You stated this concept in an earlier video. Doesn't past stock performance skew your option trading decisions?
Eddy Beckford (3 months ago)
Mike Arnold it does , you want to learn more or looking for new investments opportunities mail me [email protected] let's talk better
YAMIN alharbi (3 months ago)
can we use opstion spread for day trading
Eddy Beckford (3 months ago)
YAMIN alharbi you can but you will have to pair the right bht , you can mail me if you are serious about making money of day trading
SuperTennisManiac (3 months ago)
in your vertical spread example scenario 1, how do you take profits before expiration when you have sold a call option, meaning the one with the power to exercise his right is the buyer and not you? Therefore, how do you take profits before expiration if the buyer of the call option still has time to wait and the rights to exercise the option?
Ro Nato (3 months ago)
Wow so educational thank you
pfhrmb (3 months ago)
When netflix was below $100 lol
Brandon Bennett (2 months ago)
I know right... $324 at the moment... A lot of these videos dated back a year or two are like this. If only I had a crystal ball...
Robert Clark (4 months ago)
Very insightful, excellent job of explaining the vertical spread
Jay Lewis (4 months ago)
Can u buy a put and buy a call to break even too?
Eddy Beckford (3 months ago)
Jay Lewis yeah you can if you need more advice on trades or want to make money of trades mail me [email protected] mail
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14naif14 (4 months ago)
you are a great man ! THANK YOU SOOOOO MUCH
Luann Siemon (4 months ago)
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AAA (4 months ago)
Working very well with AMD stock
Conquer Fitness (4 months ago)
Can you do this with robbinhood stock options?
Indiaboi93 (4 months ago)
I'm new to options trading and these videos are very helpful but i was wondering why would you not sell a call option that is extremely unlikely to fail. I know that profit will be low but since it is extremely unlikely to fail why not buy more contracts to increase profit. for example, stocks that are in clear downtrend with exteremly bad news coming out of company.
Sivakumar Anbazhagan (4 months ago)
dont gamble and lose your money
Eddy Beckford (3 months ago)
Sivakumar Anbazhagan it's only gamble when you watch videos on here and automatically think you are an expert and start gambling with your money, there are ways around this that you can never learn from videos , you want to learn more mail me [email protected]
Jennifer Gonzalez (5 months ago)
Can you exercise your option multiple times before expiration or is it just once?
P Jones (5 months ago)
This is very helpful but I do have great strategies that really work with a proven record of over 23 successful trades, I'll give you some strategies for free and we can only proceed if you've a positive trade. feel free to contact me.
robertius1969 (5 months ago)
buen vídeo, ánimo
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Lori Favela (5 months ago)
Where have you been all my Trading education? I would have already been started Trading long ago.
Do You have to own the stock in order to sell short and collect premium, correct?
Michael Perry (6 months ago)
Adam keep the videos coming
Ron Smith (6 months ago)
What is the difference between a Bull Call spread, a Bull Put Spread, a Bear Call Spread, and a Bear Put Spread in relation to what you have shown here in this video?
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E Hassan (6 months ago)
I just sent him an email. Can he work with €500
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I remember my first time working with Mr Lucas Anders. It was quick and I got my first cash earning of €8,300 in two weeks
kent good (6 months ago)
As far as I know, mr lucas's strategy can accommodate any amount because of its flexibility
clariz ri (6 months ago)
Many thanks, I have been researching "apple option strategy" for a while now, and I think this has helped. Have you ever come across - Winoorfa Option Olegroson - (search on google ) ? Ive heard some interesting things about it and my cousin got cool success with it.
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No name (6 months ago)
cineva Roman ?
Murphy Abby (6 months ago)
Sky view trading is my favorite option trading video out there,easy to understand videos in complicated trading techniqes,thank you very much,you are the best in my book!!!!!😉
Christopher S (6 months ago)
hmm everytime I try to set up a trade, my profit/loss is way off. how did you find such a good ratio between the two?
Christopher S (6 months ago)
like my max profit to max loss are way off
Robbie B (7 months ago)
Very well done. I learned alot. But what I can't get my arms around is once I book a vertical option as in the examples in this video do I need to manually do anything to buy or sell the call? Or does it automatically happen? Also, how could you sell shares you don't have?
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tablameister (8 months ago)
Brilliant! Very clear and concise explanation.
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where is the best trading company to create an account??
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Trade Golf (8 months ago)
Nice Bad Boy!!! Wish It was explained to me this way years ago.
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Robert Wrightson (8 months ago)
the vertical spread loves PSL
Remembering 1992 (8 months ago)
This is insane.  Give me one historical example (just one!!)  of when you could have established such a spread on a stock that has only a 1% probability of rising above your vertical call threshold.  These vertical spreads are insidious.  You may win for a while, but the chickens ALWAYS come home to roost.  I've never been stupid enough to try, because I've done my homework.  There are NO SHORTCUTS to investing.  Simple vertical spreads are for neophytes and idiots.  (Or con artists who make more selling "seminars" than actually trading or investing.)
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junaidf (9 months ago)
I got denied by Ameritrade to trade spreads. Can you guys help?
Eddy Beckford (3 months ago)
junaidf sure I can , ameritrade is quit tricky mail me [email protected] let's talk better
Devon Olson (9 months ago)
How far out of the money do you usually go? I've taken an investing workshop that does a great job explaining bull put spreads/bear call spreads/iron condor type strategies. He recommends 11% OTM for bull put spreads and 9% OTM for bear call spreads. Making sure your probability OTM is greater than or equal to 90% and/or delta is between .04-.10? Curious as to how you choose your strike prices for each? Great video by the way!
christopher gillig (9 months ago)
my brain
shakti kumar (9 months ago)
Excellent video
Alex (9 months ago)
Best options teacher ever seriously thank you so much
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Health Products ممكن شرح باللغة العربية
Lori Favela (5 months ago)
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good tool
Doug D (9 months ago)
I had a problem understanding the "loss" math. If I have 100 shares (1 contract) at 3.00 and that puts cash in my pocket of $300, how does the 30 points above my option turn into $2700? Would someone please spell it out a little more clearly? Love the video by the way...great information!
SIR-CASSIAN (9 months ago)
What is the safest way to exit such a position to ensure success?
SIR-CASSIAN (9 months ago)
how do you get rid of the option before it expires
jack smith (9 months ago)
I am convinced this is a great strategy, however, if the stock price expires in between the two strike prices, you will be assigned the stock and the other leg of the option will expire. So, you will either have to fund your account to buy the assigned stock or sell very quickly on monday morning or the next day and if the stock gaps down you could have large losses. I don't know why most of the guys who sell education don't address this situation. Most of the time experienced traders using this option will close the position or roll it out another month, before the expiration day. If you don't understand this in a detailed way, don't use it.
Sky View Trading (9 months ago)
Nope... You can just close the position prior to expiration and you will not have to own the shares of stock. Easy solution... Just close all trades prior to expiration.
Gokulnath jayabalan (9 months ago)
to the point explanation and awesome demonstration of actual trade, very thought out details on vertical spread, i am a subscriber now..
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Sexism Against Men (9 months ago)
I need to understand about naked calls before trading. I am thinking about writing a naked call on a stock that is trading at 80.95. The strike price is 70. The premium I will get is 11.25. If assigned, I will be short 100 shares and I will need to buy back the stock. So when I write the call I will get $1125 put into my account. But my question is if I am assigned, does my account go short 100 shares. Or 100 short plus I get $7000 into my account. Please let me know. Thank you.
carlos hernandez (10 months ago)
Hi, thanks for this videos, are very helpfull. Just a question, which platform is this? Can you please recomend it or give me information about it?
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jim pincollector (10 months ago)
Awesome thank you
sivasubramanian suresh (10 months ago)
I am from india very nice .thank u teacher
justdancing (10 months ago)
Perfect examples for visual learners like myself.
Reishma Gordin (10 months ago)
4:20 How do you compute $2,380 profit for the Buy Call @1.20?
Christopher Geis (11 months ago)
completely interesting.
Christopher Geis (11 months ago)
Very educational I ENJOYED  lesson.
Praveen krishnan (11 months ago)
Very very thankful bro
BINARY OPTIONS UK (11 months ago)
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richy r (11 months ago)
I want to use this method so bad but it messes my head up every time lol I have no idea why.
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Cars and Gaming (1 year ago)
So if I buy a call, and the expiration date is in one month. Lets say the stock went up a lot today and I think it wont go higher than this over the course of the month, what options do I have right now if i want to collect, and which option would you take?
MrNathan791 (1 year ago)
I really appreciate your training videos. I'm still trying to understand spreads. thanks for posting.
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Jeremy Duran (1 year ago)
Do you have to cover the call that you sold or does it cancel out with the call that you bought
KNK Ohana (1 year ago)
Newbie here, Is it sell to open, sell to close, buy to open, or buy to close, please clarify when making statement of Sell 100 call and Buy 100 call, your help is appreciated. Thank you.
Steven Brewster (1 year ago)
Really great video.
Charles Brown (1 year ago)
Don't you wish you found this guy two years ago? I do ...wow!
Carl Huffman (1 year ago)
very nicely priduced
Eddy Beckford (3 months ago)
Carl Huffman if you need help with trade or looking for new investment , I am your guy mail me [email protected] .com, you'd never regret it cheers
damarcuswilson1 (1 year ago)
So if you're assigned and don't any stocks in a spread, what happens?

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