Option Trading For Beginners 2020 - Favorite Debit Spread Technique

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Enjoy stocks trades and options on Robinhood? You came to the right place. This channel specialized in large trades and risky options trading on Robinhood. Gains and losses of me and others. Lots of simple financial advice and best picks in the market!

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[tutdrei]

i think this was the simplest breakdown of debit spreads. I literally haven't understood until now, lmao. thank you bruh.

[tylercampbell]

Your ability to break down call/put debit spreads was great. Learned a ton, and it wasn't a 37 minute long video. Thanks

[evadesc]

do a complete Options tutorial from the ground up, long/write calls/puts, verticals, diagonals, iron condors, jaded lizzard, ratio spreads, strangles, straddles, etc., How the premium depreciates faster as you get closer to expiration and lose extrinsic value, etc., How even buying long call/put Options way far out the money can make options' premiums go up in price if a favorable move occurs with the underlying stock allowing the contract owner to close the contract for a profit, and so on.

[deec]

Finally I understanddd this you explained it so clearly other channels had me confused af!

[raymondc]

This is awesome man. Is there a video comparing debit and credit spread? Which one is more preferable?

[everything]

Should you just wait for expiration on both contracts in 2 weeks, or could you sell sooner?

[Asapchap]

For max profit in a perfect world are you supposed to let it expire or do you have to close before expiration

[ashuahu]

Hey, its very good and an informative video. Quick quick question, what if Apple’s stock is moving upwards and I don’t want to wait till the exp date. Can I still sell my contract before exp date and lock in profit ?

[markymaarty]

Can you please explain WHY are you choosing call SELL & BUY at a certain strike? You show your video how to choose. Which is awesome! Please also explain why and what is the reason why a trader should choose that strike price. Why is the buy MUST BE lower than the sell call? Thank you for the video

[movahedsediqi]

Thanks i learned put and call spread from your videos but i got a question, whats difference between put credit spread and call debit spread in the money?

[elijahreptileman]

So if you make a Call Debit Spread far ITM on a good uptrending company like AAPL or MSFT you are pretty much guaranteed to make max profit? Even if it drops? Obvioulsy doesnt drop below Sell Call but even if it drops you still get max profit? Am I understanding this correctly? Sounds like free money

[darrenboi]

For the same strike price which is better? put credit spread or call debit spread? or essentially they are the same?

[Ozzyozzysheesh]

Make a video on how to close a call debt spread trade please

[eric_david]

these are really good for swing trades too plus your risk is way more limited because you’re only paying the difference between the premiums rather than the whole premium. the way the market is now it’s really risky to hold anything til expiration but with debit spreads you can easily double your money in a day or two then close when the stock dips then repeat the process.

[personalfinance]

I'm having trouble with the assignment risk.

[boydizza]

I am going to have to debunk what you said in this video unfortunately. Robinhood is now closing ITM Spread Options not allowing you to collect Max Profits. It has happened to me multiple times and I have done the research and found hundreds of other comments across Youtube Stating the same. The final straw for me was last week with AMC when I had (5) Different Call Debit Spreads with (5) Contracts on each one. All of them were ITM by roughly $7 or more going into Fridays expiration. I am from California and at roughly 11:45 am All of my Options still had both legs well ITM with my closest to the Stock Price being about $5 away. I was so pumped. As I would be getting Max Profit on all (5) Spread Options. I walked away and made a sandwich and when I came back around 12:15. I noticed that all of them were gone. Robinhood Closed them all for less then half the Max profit. I paid roughly $125-$175 for each individual Option that contained (5) contracts. I was given roughly on average $65 profit each for the (5) Options. Roughly only making $325 or so for all (5) combined. Now of course $325 profit is awesome. But I did not go with these strike prices and option plays to make minimal profit knowing that AMC would be moving up. My Total Max Profit should have been $500 x (5) Options for $2500 minus the premiums I paid for all (5) Option Plays that contained (5) Contracts each. All of them still expired with both legs well ITM. I paid on average roughly $150 per Option Play so about $750 total. That minus $2500 should have given me $1750 profit. I received $325 instead as Robinhood CLOSED out all (5) Options at 12:05 and gave me the bare minimum. I was watching them and could have closed them out myself at 11:45 for 3x what they gave me. I am pissed beyond belief. I emailed the and what I got was a very lame answer from one of their Options Specialist. Due to the fact that your Debit Spreads were at risk of expiring OTM we took the initiative to CLOSE them out on your behalf for a profit. This is what Robinhood is now doing. They have made deals behind the Retail Traders back to not allow for Max Profit. If you were to make the same exact trade in the example above they would close it out early on the day of expiration and instead of the $95 Max Profit you should be receiving for winning your Option play and both legs expiring ITM you will get whatever they feel is the fastest and easiest to close which is somewhere in the area of maybe $30-$35. Is their any chance you can help us understand that one.

[carloromero]

I tried this method today (2/1/21) for FUBO. I bought 'sell/call' with a strike price of $48. I bought 'buy/call' with a strike price of $47. The price of FUBO was around $46 when I purchased the contract at $35 (expiration 2/19/21). FUBO's price went over $48 but I was no where near making max profit and I COULD NOT sell my contract when I made a little bit of profit. At the end of the day, FUBO closed at $52.28 and I only profited $5. I still wasn't able to sell my contract. Why is it difficult to sell the contract and why wasn't I able to get the max profit? I'd like to correct my errors and improve myself using this method.

[nonfungible]

thank you so much man been trying to understand these for awhile

[deghet]

Great video bro. I had learned a lot stocks options by watching ur video. I love it. I’m think doing this option on IBM stocks going up. What do u think?

[joshualiebman]

So how do I get the money from my contract? Do I get to sell it the moment it’s above my call so I can maximize money or do I have to wait till the expiration date?