The Ultimate Beginner's Guide to Trading Debit Spreads (Profitably)

Get Your Copy of The Options Income Blueprint For FREE:

There are times in the market when the volatility is low.

And if you try to sell premium in such low-volatility environment, you can't really get much premium.

So what's the alternative?

It's to trade low-volatility Option strategies.

In this video, I'll share with you my no.1 most profitable low-volatility Options strategy.

Other videos you might be interested in...

#optiontradingforbeginners #optiontradingstrategies #optionsellingstrategy

Please subscribe & hit the notification bells for more videos like this just for you:

[optionswithdavis]

Get Your Copy of The Options Income Blueprint For FREE:

[mandyll]

Very detailed explanation on how to trade debit spread. I learned a ton and really love the examples you gave in your video! Thanks for another awesome video, Davis!

[saifudinsaleh]

Dear Davis,
Tq for being a Great Teacher.
Does this work well with XSP and single share as well?

[lonewasian]

Thanks for another great video Davis! Would we go for a farther DTE for these trades to avoid theta decay? I imagine a shorter DTE would decay pretty fast.

[timijeboda]

Awesome video!! You are a excellent teacher. You made it very plain. Could you in the future explore the cost of these trade in a cash account or must one use a margin account?? Also, can one execute this trade in a ROTH IRA acct??? Thanks for all you do and reply in advance. :)

[clabiscom]

Helpful video Davis, but it is not always true that in a low volatility environment you gain from the increase of volatility. Bear in mind that whereas it is true that you make money when volatility decreases, in general when volatility increases the trade comes against you and you could more easily lose money. When you show the trade it may be useful to know what was the IV rank when you enter the trade and how does it behaves as volatility changes. Thanks

[MFWan]

Great video! Do you also use 21 DTE to close the trade?

[penzput]

With your short leg ATM, you are collecting a lot of premium to cover the extrinsic value in your long leg. The position will always be worth something as long as the long leg is ITM (has intrinsic value). I like doing Zebra's if I'm directional - to pay for the extrinsic value & get very close to the same profit as I would owning shares (if I'm right on direction), but with only a 10th of the cost of owning shares. TastyTrade is where I got the Zebra idea.

[chessychesster]

Yet another awesome video Davis!!! I like the part that it's a positive expectancy strategy. Good timing as well cos many of the stocks I'm watching have been going up and is overbought! Time to short them using this strategy. Thanks!!

[isaacgamingz]

Good video Davis. You didn't go into details of DTE and when to take profit. When doing credit spreads, time is our friend, therefore you'd do 30-60 days DTE. I'm assuming with debit spreads, we don't want to be that far out? Maybe 15-25 days DTE, and take profit at 50% as well?

Thanks! Keep up the good videos.

[ronaldjew]

Great video! Learned a lot especially in detailing the risks of multiple loses in a row and the detrimental psychological effects. I believe I will stick to defined risk credit spreads! Easier to sleep at night!

[TBradFashionModel]

The technicals lose me, but when you show the examples in the strategy of Stochastic set up, then where the put would be set up, that's the best demonstration for visual learners...

[francoiskeulen]

2:52 which program is it you use to calculate the probability (for instance 51%/49%) win-lose ratio?

[RahginiJackson]

Hi thanks for teaching, I appreciate it. Psalms 32:8 in the Old Testament Bible. Have a good day.😊