Short Vertical Spreads: Options Strategy Management

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Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims (including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request.

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[miguelalvarez]

Tasty allways with the best info, keep posting this kind of short instructional video.

[danieldokken]

This is a great video. Can’t believe it doesn’t have more views. I’m a small account and mostly use vertical credit spreads. Thanks

[jakeallan]

Thanks for the video James. I've found it challenging to find premium values for 1/3 of the total spread width. Most are 15-25% - how do you find higher premiums with high probability of success (e.g. 70%OTM targets)? Also, why do you use IVR and not IV percentile when making an assessment of how to manage "dance floor" trade situations?

[nobnoba]

totally agree on rolling out to the next month. but i dont understand with the insistence on same strike? that is like saying: "We are right, the market is wrong, sit tight, watch me, ill proof it". why not roll out in time, roll down in strike, take a small extra credit. i mean, the market is 'always right', no?

[arewethereyet]

I really appreciate your videos. Far and away the most informative and simplest breakdowns of options trading I have found. Thank you, thank you.

[davidpearce]

Excellent video Jim. Very helpful. Thanks!

[bijushanmughan]

Thanks, tastytrade team, excellent info continue....

[freddrake]

Good information. I appreciate the short length of this video.

[michaelfinance]

Great content, love it, but can someone explain to me why it suggest close at 50% profit?

[stevenmcloughlin]

Hey Tasty team, please add the Strategy Management series to the Options Crash Course playlist. Thanks!

[webrebel]

Good stuff my Dr. Jim man! Mucho thanks!

[rickphillips]

Dr. Jim, thanks for the info. If you have a tested vertical spread, do you roll out if earnings will occur before the expiration you are rolling to? Or do you wait to get past earnings?

[TBradFashionModel]

Can you not add a put spread outside of expected move to lower a losing position?

[NotAllHeroesWearCapes-]

what .. if trade goes against you ... dont just roll over to next month .. set up a stop loss say at 100% of your premium received and exit the trade and wait on the re-entry. Rolling over to next month is like saying "I am alway right but just need more time" . When you are wrong, accept you are wrong and move on.

[Mumblerit]

What deltas are you guys looking to put on the short and long legs at? Thanks

[jeanphi]

thank you for the extremelly interesting video but as a new in this industry, it will be nice if you can illustrate the strategy by a real example. For example what do you consider as high IV and low IV

[GWCNY]

Love your videos, James. What happens if you buy back the short leg? Would this turn it into simply a long position? What if the stock price shot through your spread unexpectedly and you bought back the short leg? Would the loss on the short leg be balanced out by a gain on the long winner? Or are you thinking I should reconsider trading options right now 😅

[pgannon]

It would have been SOOO nice if you had shown us HOW to place the trades on the Tastyworks platform as well as what to do.

[allenzhang]

Hi in the short call spread, what difference between sell ITM call and sell OTM call ? I saw two type of this spread all the same is buy OTM call ....?

[TheTanglingTreats]

What are your thoughts on rolling past earnings? Would that turn a potential winner into a loser due to increase volatility?