HomeОбразованиеRelated VideosMore From: tastytrade

Basic Strategies - Vertical Put Spreads | Trading for Newbies

83 ratings | 7310 views
Understanding Vertical Put Spreads On this episode of Trading For Newbies, Ryan and Beef explain both buying and selling vertical put spreads. A vertical put spread is similar to a call spread but is instead created by simultaneously buying and selling two different put options at the same time. The action we take (whether we buy or sell) with the front option determines the direction of the trade, whether it's a bullish or bearish trade. A long or short put spread works in exactly the same way as a long or short put option, but the spread has some interesting benefits compared to just buying or selling an option. If you're interested in learning more about puts, make sure to check out our previous lesson on trading put options. Episode Contents: Buying A Put Spread Selling A Put Spread About Trading For Newbies This series will educate you, the beginning trader on the basics of options trading and the tastytrade approach to trading. Our goal is to get you to the point where you will be able to actively find opportunities in the market, enter and exit trades, and clearly articulate what you are doing throughout the process. ======== tastytrade.com ======== tastytrade is a real financial network, producing 8 hours of live programming every weekday, Monday - Friday. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 50 original segments, and over 20 personalities, we’ll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. http://ow.ly/EbzUU Subscribe to our YouTube channel: https://www.youtube.com/user/tastytrade1?sub_confirmation=1 Follow tastytrade: Twitter: https://twitter.com/tastytrade Facebook: https://www.facebook.com/tastytrade LinkedIn: http://www.linkedin.com/company/tastytrade Instagram: http://instagram.com/tastytrade
Html code for embedding videos on your blog
Text Comments (9)
Deborah Sbeghen (19 days ago)
thank you so much, but I cant control when to buy back my short puts/calls because if someone whants it I am obliged to sell it... is that right? and if yes, what happens to my game?
LAWRENCE NSOBYA (30 days ago)
On the example of selling a put vertical spread, why do u use a strike of $170 which is already ITM coz the stock price is $172+. Why dint u sell the $175 strike?
LAWRENCE NSOBYA (30 days ago)
Where is episode 5?
kms386 (4 months ago)
In theory once you make your max profit on a strategy like this there seems no reason to continue to hold the position. Am I right in saying you should sell the strategy and allocate capital elsewhere in all cases if max profit is reached.
Saitom Sai (5 months ago)
thank you for the educationnal your are giving us.
PNB Alligator (8 months ago)
Great video guys, keep up the good work. But there still are some things unclear to me: - When buying a put spread, you say the risk is the amount you pay for the spread. You have to pay (4.60-2.82)*100 = $ 178. But the max loss is -167 in your program. - Also you say at the 'selling vertical put spreads section' that the max loss is the widt minus the received premium. This is 500 - 164 = $ 336. But the program states that the max loss is 332? - How are these max profits/max losses calculated?
myancestors (8 months ago)
please do more of these
tastytrade (8 months ago)
More on the way! Stay tuned!
Moses Tighil (8 months ago)
thanks for this incredible education, i love it

Would you like to comment?

Join YouTube for a free account, or sign in if you are already a member.