Credit Spread | ONLY RISK $50 (Beginners)

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𝐋𝐞𝐠𝐚𝐥 𝐃𝐢𝐬𝐜𝐥𝐨𝐬𝐮𝐫𝐞: I’m not a financial advisor. The information contained in this video is for entertainment purposes only. Before investing, please consult a licensed professional. Any stock purchases I show on video should not be considered “investment recommendations”. I shall not be held liable for any losses you may incur for investing and trading in the stock market in an attempt to mirror what I do. Unless investments are FDIC insured, they may decline in value and/or disappear entirely. Please be careful!

[kjaubrey]

Good information.

As someone new to selling options and doing spreads (I've purchased options before and learned that lesson) the hardest thing for me has been watching the option show negative until close to the expiration.

[nathanatreidies]

I just started doing options. This video did help solidify my aim of using credit put spreads. Small account made $40 my first week. Would have made $120 second week but it going negative made me jump out. So only made $80 last week..

[antonzharkov]

Henry, great video-thanks! You motivated me to create my first BullPut Credit Spread 👍

[stephanvallare]

We need a video on what to do if the stock is trading in between strike prices on day of expiration. When you say close does that mean buy back the short? Because when. I select close on RH the fill likeliness is low and doesn’t get filled.

[lakeacres]

something that doesn't make sense to me is if say you have a delta of 0.35. if that means the win rate will be roughly 65% of the time on a position that has a max profit of $142 and a max loss of $358, if you do the math and say 65 out of 100 times you win and 35 times out of 100 you lose, wouldn't your winnings in this instance be $9, 230 and your loss be $12, 530? how do you protect against the long term potential losses? is this where being able to accurately predict the market comes into play?

[TheBbarr]

“Not as safe as just selling a put.” What? A put credit spread is much safer than selling a put.

[CapitalWheelTrades]

Everyone please keep in mind that you can have a hard lose if this trade doesn't go in your favor. If you sell a cash-secured put or covered call you can always regain your lost stock value. This trading strategy entails more risk. But with more risk comes larger rewards as well.

[tajsullivan]

do you need a cash account on robinhood or margin? to do put credit spreads

[debrahuynh]

Don’t you have to have collateral for the spreads?

[TheKingdollaz]

Henry does low risk repeat sell covered calls. That's it.

[tinorusso]

you can’t be a beginner and do this you need level 3 options

[limwiyono]

Am from indonesia ...love that your video has text that I can now get what you speak conviniently. What trading broker platform is it? Robinhood?

[PatrickHD]

should i still do put credit spreads if i think stocks are to crash and just do what you did and keep opening down or do you think a call credit spread is a good idea

[laurentbozzi]

So finally, what did you do with TSLA which continue to go down on 04/19 ?

[scotthenderson]

When would it close if it go's against you? How soon do you have to roll/close it? Is it like selling calls/puts and it jumps/dumps say 3 days early and get assigned. Will it get assigned only the expiration week for a say 4 week trade?

[rahmzadeh]

Thank you for your help, some of your videos says we can do put spread and do not need too much in our account, I have some money in my account, but Fidelity rep. is telling me that I have to have minimum 10k to do spread. What am I missing?

[Danielng]

With the current drop in market, will call credit spreads be better? Cuz not sure how long will the drop be. Any suggestions if it is your portfolio, what will you do?

[thebigledovski]

What happens if you let it expire? At the expiration date, ideally you will be in profit of course (for the premium + gain on selling the put), but what happens with the bought call? it will be in loss, so the broker won't force you to exercise on the put?

[minigear]

Hi Henry, the 265 275 bull call spread still ok at the moment to buy? thanks

[andysaltzman]

Henry, I don't think my brokerage will allow me to do this type of trade unless I have enough cash in the account to cover the potential assignment of the short put. Thoughts?