Vertical Put Credit Spread Tutorial | Options Trading Concepts

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[chairman]

Thanks Mike and Tastytrade team this is Gold. I'm new to this. Everytime I watch then rewatch your Videos I learn something new👌.

[kohkoh]

Your explanations are awesome. Like how u manage to really summarise the concepts well. Thanks Mike and tasty trade team!

[JoseGarcia-krxx]

this is genius, ,,,you know the risk off top and you collect the premium or take some profit along the way...I love it.selling puts is a real good thing, , , thank you

[rafaelparedes]

I love these explanatrions but they are so confusing when there are no numbers. It is so much easier for me to understand this with the math behind.

[fooling]

I like your videos, I think they would be better if they were more visual for beginners. It might help more if you used the trade sheet on tasty trades trade tab so I can see just what you are talking about. For advanced traders this is fine, but for a novice such as myself, I get lost because they are no prices to look at.


Is this the same for an inverse options, such as VXX or VIXY?


Thanks

[eyerocmedia]

Why is it that no one tells people about collateral? Like, it’s important. But no one explains it so that people watching will understand that they’re risking their collateral.

[quantum]

Please add the link to the description: Rolling vertical spreads when in the money.

[GeorgeFeelgood]

Interesting how you define a vertical Put credit using horizontal line examples!

[rogjerr]

Can you explain a little about what to do if assignment occurs? e.g. Spot goes ITM on the short put, assignment occurs, do you wait & hope for spot to go ITM on the long put so you can exercise (sell the shares)? What about if the spot stays flat or goes way up before the long put expires?

[hassansaeed]

which delta to choose generally? for Credit Spread

[Brzy]

this would have been more helpful he actually used pricing in his graphs. for example Stock price at $50, buy/sell put at 48/47..

[FAITHG]

What happened if you want the shares and the stock goes down pass your put can you sell to close your long put and use your own money to create a cash secured put?

[leonardyoutube]

13:21seconds you stated spend the Commissions to get in and spend Commissions to get out but with spreads you pressumably already closed your position. Am I correct? If so what do you mean by spend to close the put buy?

[lytnin]

Mike, isn't there a risk of assignment if the underlying ends up in between your two strikes at expiration?

[jaysant]

Is it just me or is the max loss much much higher than the credit received? And I'm talking 25 Delta Puts. This is why it doesn't seem too worth it to me. One loss can wipe out 5 or more winners. The only worth it part is the small reduction in buying power. Or am I missing something here? Is there a way to keep max loss not so out of proportion with the max profit potential while still trying to sell one at 30% chance of in the money? Because the only way I've found to not have them super disproportionate is to sell close to the underlying price. Hope to get an answer back. Thanks!

[yannidubai]

Mike great stuff! What happens if on Expiration, the price goes lower than the short strike and higher than our long? Do we get assigned?

[VinoWoods]

Thank you for the video. I think I am confused on the credit/profit part of the option. If you receive the credit right away upon selling the option, and the max profit is the amount of credit received, why do we have to wait to get to 50%? Don’t we get 100% of the credit upon the initial sell?

[jonathanvillanueva]

How many option contract you can trade on expiration day?

[nbt]

thanks for the video. maybe it would be easier to use a real-life example, gets a bit hard to follow.

[zerototalenergy]

Hpow can I put a stop loss order on a vetritcal credit put