How To Trade Option Spreads In 5 Minutes

If you want long term trading success, you HAVE to learn how to trade option spreads. These can be very intimidating and boring to learn... until now.

I created this video that should teach you the basics of option spreads in 5 minutes. Watch this 5 minute video and get started learning why spreads are an absolute must. Enjoy, and let me know if you still have questions!

Enjoy the video? Please like, share, comment, and subscribe!

Thank you!
Sky View Trading

option trading
options 101
option spreads
vertical spread
calendar spread
strategy trader
how to
trade options
credit spread
debit spread
calls

[Damian-ummv]

I have seen all your other videos and i really think that you are a very good teacher . Thanks

[bd]

Thank you!! Watched after 7 years!! :)

[chibuzochilaka]

You are such a fantastic educator. What I learned by watching your videos are unbelievable. Thank you so much.

[kurniadharmawan]

I have seen somenof your videos and they are superbs. Keep them coming...

[MGISLLL]

Hello Adam
Excellent video!
At 2:10 of video, you said probability of success is 35%.
How do you compute that? Thks

[JavonniAtiyya]

After weeks of research and hours of learning, these videos are by far the best.

[hadassah]

Do you have to look at the Greeks when you’re doing vertical spreads? Will they help us choose the right strike price when applying the vertical spread method? I love your videos btw. The animation and explanation makes it so easier to understand.

[srf]

Thank you for this. I just had an "aha" moment in my young options trading career. The strategy of trading high probability, lower reward plays is the fundamental key to becoming consistent profitability. Once that is attained you can scale up to whatever reward level you desire while still minimizing risk. It's true, it is much easier mentally and realistically to guess where an asset will generally probably not go as opposed to exactly where it will. Simple and unarguable.

[Tripl]

I think this is the first time I am starting to understand...Options. thank you.
A New Subscriber.

[jasonavina]

subscribed immediately! Such a good explanation! I've read so much on this and this is one of the best explanations out there!

[stevek]

Thanks for the video...and all the other great ones. At the 2:10 ish mark how did you determine a 35% probability of profit?

[Jay-fedc]

How do you calculate the 35% chance of the stock going up?

[codyhall]

Question about gain percentage:
Is it correct that the gain percentage is (Max Profit)/(Max Potential Loss)? Or should the amount of capital you have tied up in the order (through margin) be taken into account?

[osme]

Love your videos! keep them coming Adam!

[jeremyb]

that. was. awesome! thanks for the class!

[gauravudiyavar]

1 question. What happens on expiry of the option? Do I have to close the contract or it happens automatically? For instance, if I'm on vacation or at work, and let's say the guy whom I sold a call to, exercises his option. Do I have to manually exercise my call option to cap my loss or will it happen automatically?

[Mabeylater]

2:10. What formula did u use to determine your probability of profit? Thanks!

[farawayskies]

Super cool. Now let me watch this again and again until I understand.

[shamiekgivens]

Sorry if this is a dumb question, but wouldn't you have to buy a contract at a different strike price first before you can sell it? A vertical spread is basically when you buy an option contract that at one strike and then you sell another contract at a different strike price, correct? If so, how would you sell a contract that you haven't bought?

[Mabeylater]

2:24 I’m a little confused how you buy the call for $2.10 when on the screen it says $2.07. Do u have to add $.02 whenever u buy a call or something? Thanks! And your presentation style is AWESOME!!