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The Best Vertical Spread Option Strategy 2022 - Proven Trading Strategies

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  • Опубликовано: 14 авг 2024
  • What's The Best Vertical Spread Option Strategy?
    First time here? Watch this video: go.rockwelltra...
    To get the transcript, go to: www.rockwelltr...
    Want to View a Specific Part?
    - Intro 0:00
    - 4 types to look at 0:23
    - Call Debit Spread 1:10
    - Market Opinion 1:57
    - Put Debit Spreads 2:25
    - Credit Spreads 3:17
    - Trading a Call Credit Spread 3:26
    - Put Credit Spread 4:30
    - Market Outlook 4:58
    - Call Credit Spread Example 9:01
    - Credit Spreads 10:10
    - Max Reward 10:56
    - Maximum Risk 16:23
    Recommended Links & Videos:
    Learn more about our Trading software, the Power X Optimizer: bit.ly/PXOToday
    How to choose the right strike price: • What Is The Best Strik...
    Learn how to trade The Wheel Strategy in 15 minutes or less:
    • The Wheel Options Stra...
    Call Debit Spreads Explained: • Call Debit Spreads Exp...
    Put Credit Spreads Explained: • Put Credit Spreads Exp...
    My Trading Routine: go.rockwelltra...
    #StockMarket #OptionsTrading #verticalspread

Комментарии • 543

  • @rockwelltradingservices
    @rockwelltradingservices  Год назад

    To get the transcript of today's video, head to: www.rockwelltrading.com/articles/coffee-with-markus/best-vertical-spread-option-strategy-2/

  • @lastdonuts
    @lastdonuts 3 года назад +27

    Jeez, idk how many spead videos I've watched now bc it just wasn't "sticking", the one page chart with the same stock made it so clear

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад +7

      Thank you for the feedback. I try to make things as clear as possible in my videos 👍

    • @grantdoubinin5747
      @grantdoubinin5747 3 года назад

      @@rockwelltradingservices wwaaàaAaaaaaaaaaAaawaaÀaaaWaaaaaaaaaaaAaaaàaaaaaaaaaaAaaaAawwaaAaaaaaaAaàaaaaàaaaaAaaaaaaaaaaaaaaaaaaaaaaaaaAaaaaaaaaaaaaAaaaaaaaaaaaaaaaaAaaaaaaàaaaaaaaaAaAaaaaAAaAAAAaaaaaWAaaaaAwaaAAÀAAAAaaAWwaAaaaaaaaAAaAAaWaaAwaAwàAaaAawawaaaAAAwaaaAAwwaAaaaAwaaAaAaAaaaaAaAAAaaAAAASAAaaaaAAAAaaAaaAasaAaAaAaaaaaawwaaaaaaaaaawAaaAaaawAAWaAAAWAAWWAAAAWAWaaAwAAaaaAawawwwwaaAAwWwwWaAaAAAaWaAAWAaaaweAaa3AAWAaqaaAaawÀAEeàßaßasaaaààwásßasaàsßAssaSsÀSeSeAssaAsSAwWWASAwaSAwsSWAàasSwassÈ4qeawASesaàawe3qqaqqq12212qq1qaqq1q1aaaWWAWwASsWasswaàAWaswwaaWaassssàSàEAeAÀAWAWSWWAAAAAWWwAwAsàWww

    • @joycealanis
      @joycealanis 2 года назад

      Agreed. For me, the other thing that made so clear to me is when he showed the market opinion, if you think the market is going up, or down, then which spread you should use based on your opinion of the market. I never really found a video that explained so simple and so well.

  • @joshuafolsomart2057
    @joshuafolsomart2057 2 года назад +3

    thank god someone actually knows how to easily put together an explanation on one page with an easy example. good job

  • @nathanielwilliams6154
    @nathanielwilliams6154 Год назад +10

    Beautifully done!! Now, can you dwell on how to get in and out of these trades in regards to IV and spread ratios to capture the most returns please 🙏

  • @tomd.7929
    @tomd.7929 3 года назад +7

    @Markus Heitkoetter
    You have omitted telling people how they can avoid MAXIMUM loss on credit spreads. That does not seem fair to me. Perhaps you explain how to adjust trades to avoid losses in another video?
    I trade credit spreads all the time, and by using a stop loss 3x the credit received, I rarely have a net loss on the trade, especially when receiving 2 premiums by legging into an Iron Condor,(Having a call credit spread otm, and a put credit spread otm, working at the same time, with no extra BP used.) When the short option is stopped out, my long option is still working and can, and has greatly reduced the loss.
    My experience has been that I get to keep all the premium, or keep a very small percentage of the premium, or have a loss at a less percentage than the loss on debit spreads that are not adjusted when the trade turns against you. Just my 2 cents worth to defend the credit spread strategy.

    • @mdidaho
      @mdidaho Год назад

      Good point TomD! My sons name is Tom D! :-)

  • @jet-jet2154
    @jet-jet2154 14 дней назад

    Thank you. I've watched several tutorials on vertical spreads, and this is the most informative.

  • @MrTchia04
    @MrTchia04 3 года назад +5

    This is a nice breakdown of all four spreads. I used to have to find pieces of information from various places. Thank you Markus

  • @paulojustinianookubo
    @paulojustinianookubo 3 года назад +3

    While you can say a debit spread is better volatility time and speed will kill your spread if you get wrong any of the 3 key components. With credit spreads you do not have to let them get out of control as you can adjust if you are wrong. With a credit spread time is on your side as you get pay regardless of what the stock does as long as your strike is not touch. If your spread is wrong in this 3 keys you will lose big time.
    1 if the stock does not move
    2 volatility as options tend to be expensive
    3 speed if the stock does not move much.

  • @yogash69
    @yogash69 4 месяца назад +1

    The BEST explanation of the difference between the verticals!

  • @PALUMTAR
    @PALUMTAR 9 месяцев назад +1

    Markus, You have done an amazing work here. the best youtube video when it comes to explaining this type of materials. Thanks.

  • @betinhoz1
    @betinhoz1 11 месяцев назад +1

    Great explanation. I´m gonna save this video in my favorites. It is very useful.

  • @jovencioestera8486
    @jovencioestera8486 Год назад +1

    Amazing for the breadth of information here, I had been looking for and so well done...Cant thank you enough for doing this..and looking forward to your other videos

  • @TimothyPounds
    @TimothyPounds 3 года назад +5

    Finally I can understand!! Thank you so much for breaking it down like this.

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад +1

      I'm glad you found the video helpful. I try to make these videos as clear, and to the point as possible 👍

  • @stevenglapidus
    @stevenglapidus 3 года назад +11

    Markus, I watch your videos regularly. I think you need to redo this comparison with the spread widths equal for all four strategies. Use a $10 width all four times and then show the differences in risk to reward. I think things will change and will be of much greater help to us new option users. Steve

    • @blueloo1513
      @blueloo1513 2 года назад

      Good catch Steven. I totally agree with you.

    • @vasilestana9754
      @vasilestana9754 2 года назад

      Also state the POP of debit spreads, not just of credit spreads.

    • @stevel5806
      @stevel5806 2 года назад

      exactly, he used different pricings examples for the 4 spreads and can't really tell which ones are more profitable.

  • @tomcha75
    @tomcha75 3 года назад +5

    Helps a lot to see them all on one page with examples. But regards to the risk vs reward, doesn't the strike price difference in each scenario be the reason for the poor ratio of credit spreads? They are only 10 apart where as the debit spreads are set at 50 and 30 apart. Or is this a better simulation of real life example? Sorry if that's a poor question; I'm just starting to explore these concepts and all kind of flying over my head.

  • @Koel0202
    @Koel0202 5 месяцев назад

    I think so far this is the best explanation for the Vertical Spread! Thank you, Markus!

  • @rickraymor3728
    @rickraymor3728 Год назад +1

    Awesome explanation!!

  • @philsummers579
    @philsummers579 Месяц назад

    Yep! Still good teaching and relevant 3 years down the track!

  • @Shaniloka369
    @Shaniloka369 4 года назад +2

    I finally got it. I had to watchit and stopping many times to take note to get it right. Credit Spread is horrible. Thank you Sir.

  • @davefield8100
    @davefield8100 Месяц назад

    Excellent presentation. Next questions are: how far in the future should the spreads be exercised: Are Weeklys better than monthly? When is best time to exit? Thank you.

  • @realfastboat
    @realfastboat Год назад

    Mr. Heitkoetter, Thank you very much for this exact explanation of Spreads. My mind had a difficult time grasping this until I saw the video.

  • @imapple82
    @imapple82 3 года назад +2

    Well explained. Perhaps you can add on the effect on the closing option before and after expiration.

  • @stephengrant6316
    @stephengrant6316 3 года назад +1

    Really enjoyed your comprehensive chart. It helps to observe on one screen the types and outcomes of spreads.

  • @Hakkolinen
    @Hakkolinen Месяц назад

    Great video. Just read some books on the subject, so this makes much sense.

  • @frankboet1
    @frankboet1 3 года назад

    Not only do you have the best hair on the internet, your explanations are topnotch. Excellent videos. THANK YOU!

  • @edliu8205
    @edliu8205 8 месяцев назад

    best illustrations i have ever seen。

  • @DIYLifeSkills
    @DIYLifeSkills Год назад

    Best explanation video of this category!!!

  • @xcaliber_gaming
    @xcaliber_gaming Год назад

    Glad I found your channel. Nice work. I will recommend you to friends as well.

  • @snand05
    @snand05 2 года назад

    You explain very well at a decent pace - thnx

  • @TravisPernell
    @TravisPernell 2 года назад

    Very good example of how these spreads work. Now I might be able to realize some serious profits.

    • @rockwelltradingservices
      @rockwelltradingservices  2 года назад

      Thank you! :) To ensure that you are going to pick the right stocks you should equip yourself with the right tools. We have the PowerX Optimizer that does the guesswork for you. Here is a special link in which you can avail of a $1000 discount www.rockwelltrading.com/products/10-44-powerx-optimizer/

  • @foodrater17
    @foodrater17 Год назад

    Wow 😲.All my doubts are clarified .Thank you so much

  • @gregf.9547
    @gregf.9547 3 года назад +1

    Wow! You explain this so well! Love your other videos too! They have helped me wrap my head around vertical spreads much better!

  • @geoffmelnick1472
    @geoffmelnick1472 3 года назад +5

    One thing about the put credit spread though is that as the price comes crashing through your position, you can sell the short as it reaches the break-even point (so you lose nothing) and just keep the long put to make money freely as the price goes lower. Keep your eye on the ball and your net premium is no longer your maximum gain. The only risk is that (a) the move will happen while you're not watching or (b) the price will end up in the little window between the spread break even point and the long put strike price.

    • @vasilestana9754
      @vasilestana9754 2 года назад +2

      you mean buy back the short put, and keep the long put?

  • @anarchistlaw012
    @anarchistlaw012 Год назад

    Perfect sense. Best and most constructive explanation on option spreads that I've seen so far. Great job buddy!👍

  • @BenjaminSkapur-on5yj
    @BenjaminSkapur-on5yj 10 месяцев назад

    Thanks for explaining everything in one page.
    Very strait forward.

  • @technofobe6376
    @technofobe6376 2 года назад

    A really nice overview on a one page Excel sheet. I have copied this spreadsheet and set it on my wall as a constant reminder of what I should be trading. Many thanks

  • @fengzhichao629
    @fengzhichao629 3 года назад +1

    What do you think using the volatility to decide long or short? In that theory, this stock volatility should be less than 50. Is this true?
    Thank you Markus for discussing this interesting topic, I like the way you think.

  • @PaulMaduka-m5w
    @PaulMaduka-m5w Месяц назад

    This was very well explained, thank you so much! What of risk of assignment, when does this happen with debit spreads?

  • @lesliemaness999
    @lesliemaness999 3 года назад +1

    Getting the general idea. You do a good job explaining. Thank you!

  • @ximeng5073
    @ximeng5073 Год назад

    Making best sense, thank you very much Markus.

  • @zettkusanagi6322
    @zettkusanagi6322 Год назад

    Thank you for the information and breakdown of all these options. I have been 'naked' trading (lol) for a while, and its incredible to me I do not know that many people in my community who are taking this approach to trading.

  • @Alfy47
    @Alfy47 Год назад

    A very clear and graphic explanation you give here , by this way it is easier to understand.

  • @maxrio6122
    @maxrio6122 3 года назад +1

    So clear, organised, professional. Thank you very much. Great Markus!

  • @tonigachau
    @tonigachau 2 года назад

    Best explanation & breakdown

  • @Armpit54
    @Armpit54 2 года назад

    One of the best lessons I have seen.... great job! Debit spreads are my bell ringer. :)

  • @leamiller6011
    @leamiller6011 3 месяца назад

    Yes makes sense and the chart style is helpful

  • @johnnymiles8694
    @johnnymiles8694 3 года назад

    So far you have explained it better than anybody else. Kudos sir

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад

      Hi Johnny Miles, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

  • @coachmarcuslomas8349
    @coachmarcuslomas8349 3 года назад

    YES!!! it makes sense. I am just now seeing this video. And it all really "clicks" for me! So much so, I am not only "liking" the video... I am subscribing to your channel!!! Thank You for all this!!! I really want to learn and have spent a lot of time trying to learn, but couldn't seem to find anything getting past the basics/mechanics.

  • @khoodavid4505
    @khoodavid4505 Год назад

    So far so good...very smart to put the various type of spreads in a table. Thank you so much.

  • @pkamikaze888naur6
    @pkamikaze888naur6 2 года назад

    Yes making very good sense, I understand now. Thanks

    • @rockwelltradingservices
      @rockwelltradingservices  2 года назад

      Awesome! I am glad that this makes sense to you. How are you trading so far?

  • @pinklizardtricali
    @pinklizardtricali Год назад +1

    Best explanation Markus.

  • @keithflotte2868
    @keithflotte2868 2 года назад

    Yes...very straight and clear

  • @leonloh3029
    @leonloh3029 3 года назад

    Yes!! Making sense. Thanks Sir Markus.

  • @DaBooster
    @DaBooster 2 года назад

    Possibly the most helpful video on the subject. Thanks for the visual layout

  • @andrewwaring1675
    @andrewwaring1675 2 года назад

    Perfectly explained

  • @himanshuvaishnav8510
    @himanshuvaishnav8510 2 года назад

    Markus, this is fantastic info. No one explains different spreads in such detail and gives such info and insight especially wrt 90% win rate and other hypes which I have heard too.

  • @samallen4213
    @samallen4213 3 года назад +1

    An excellent development, but it stops short. I would like to see on the last line the sum of the risk and reward times their probabilities as the mathematical expectation of the strategy.

    • @sunyun4425
      @sunyun4425 2 года назад

      How do you calculate the probability for a spread? Does your broker offer that detail? Think Or Swim seems like it can calculate probability of ITM OTM under the Analysis tab but I'm new to that platform. Etrade doesn't seem to be easy to navigate options information and calculating probability. Webull also seems to lack ease of understanding the probabilities. They do have a probably chart but it's not easy to understand what it's telling me

  • @sunyun4425
    @sunyun4425 2 года назад +1

    Do you use stop limit orders on these options spreads to further limit potential losses or no? or to Take profit at a certain percentage gain? How do you set that up?

    • @subscribemytube
      @subscribemytube 2 года назад

      Good question. Also, can you sell a Put credit spread instead of a cash covered Put, then accept assignment to an ITM Put while selling the OTM Put as you wish to hold the shares. In effect, would that make it a Cash covered Put with Insurance (in case of an extreme RIDE down)?

  • @amitchopra22
    @amitchopra22 3 года назад

    yes it is making sense.. very clear explanation.

  • @ismaelisaak9588
    @ismaelisaak9588 Год назад

    Helped me a lot. Thank you.

  • @kelleyrn
    @kelleyrn 2 года назад

    Good stuff. Making sense. I saved this an keep going back to it.

  • @amywagner9585
    @amywagner9585 2 года назад

    really like how you capture all this on one table - Thx

  • @frederickprice9104
    @frederickprice9104 2 года назад

    yes, this is making sense too me and you are going at a good pace.

  • @blackshirej
    @blackshirej 3 года назад +1

    Thank you for such a well explained video! I've been watching video after video trying to understand the concept and everything leaves me excited to learn more but confused on how to do it. This has helped tremendously. Subscribed!

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад +1

      😊 You are welcome! I am glad that this helps! Thank you for subscribing.

  • @earthlastdaybiblechannel
    @earthlastdaybiblechannel 3 года назад

    best explanation i have ever seen i always say only christians explain well i dont know if this brother is christian but its very clear and to the point thank you

    • @samallen4213
      @samallen4213 3 года назад

      Some of the world's best mathematicians have been Hindu.

  • @philipmills8732
    @philipmills8732 3 года назад

    I made a handwritten copy of this matrix chart. I refer to it all the time. And guess what....it's working. This chart w examples reminds me every time I put on a trade what to expect. Thanks !

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад +1

      Hi Philip Mills, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

  • @rickraymor3728
    @rickraymor3728 Год назад +1

    All on one page!

  • @alfsilva
    @alfsilva 2 года назад

    Excellent video and the breakdown all on the same spreadsheet is perfect. What I believe was missing is the expiration dates.

  • @keegankozinski5826
    @keegankozinski5826 2 года назад

    You may have answered this in another video, if so point me to that video. And if anyone else knows how to do this, then ...
    Is there a way to place an option order for a if the option price reaches this price, then buy? I thought I saw it could be done when exiting an existing order, but can't figure out if possible to do when I want to enter a position. Thanks.

  • @261Pro
    @261Pro 3 года назад

    I've been trying to lock 🔐 these strategies in for a while.. Your video is even speed and with writing examples it is easier to retain the information... I am a bit trigger shy because of the horror stories of people getting assigned and loosing very big money 💰

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад

      Hi 261Pro, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

  • @jack121232
    @jack121232 3 года назад

    Nice explanation!

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад

      Hi John Anderson, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

  • @tunerr7712
    @tunerr7712 2 года назад

    Do any traders confine their options trading to just Call and Put Debit spreads to simply go long or short on large value stocks that they otherwise would not be able to afford to buy outright like SPY? And if so what percentage of spread would they use.

  • @Rafi-Tzur
    @Rafi-Tzur Год назад

    You explain well. Thank you

  • @tonysims9892
    @tonysims9892 3 года назад

    Very well done!

  • @tygar1000
    @tygar1000 2 года назад

    Yes, great job breaking down each component of the trade! 💯💪🏽

  • @kazitaufiqiqbal1194
    @kazitaufiqiqbal1194 2 года назад

    What an UNBELIEVABLY helpful video, thank you!

  • @badass6656
    @badass6656 Месяц назад

    Good video. I thought the pacing is about right for what my opinion is worth.
    It might have been useful to see probability of success added to the table.
    Surely this a game of probability of success vs the amount that is gained or lost in the trade.
    There is not really any channel I have come accross that seems to focus on finding a cheap trade i.e relatively high probability of success compared to the (highest gain to lowest lost) ratio.
    The suggestion is having a view on the trade increases its value in one direction or another. How many of us trully know in which direction an asset is likely to move?

  • @krimlinturhks4651
    @krimlinturhks4651 2 месяца назад

    Still relevant and thank you for this info. It's 2024 now.

  • @arthurclemente8821
    @arthurclemente8821 4 месяца назад

    yes, making sense Markus!

  • @bluestarindustrialarts7712
    @bluestarindustrialarts7712 3 года назад

    You explain things very well. This all reverts back to market direction. If you are right in the directional move of the U/L, you will do ok. My problem? I put a spread on a stock that I have researched, the option period does not have earnings or dividends, 5 out of 5 analyticals rate the stock as 'strong buy, good momentum, etc' Put on the spread,.....and the stock drops 11 pts in 3 days. IDK if this is because markets are at record highs now, and are so news sensitive that anything can cause havoc. Honestly, Im not kidding I have better results playing craps in a casino. Did an Iron condor on an ETF that has been trading in a $3 channel for 3 MONTHS! Had my strikes OTM, option analyzer showed 89% probability of (modest) max profit. Market opens the next day and the damn ETF price starts shooting up like a rocket....by 1pm, Im at risk of being assigned my short call. Had to bail at a loss. I think options, the stock market in general has become nothing more than a casino sadly. The only wise thing to do in times like these is wait for a substantial drop, then buy shares shortly after correction reverses.

  • @user-qm7ni1tt9s
    @user-qm7ni1tt9s 3 года назад

    great stuff. The spreadsheet makes it so easy to understand. before this video I watched someone else's of over one hour long and was really confused. Thank you.

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад

      Hi 一对一教练, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

    • @chrisrote7641
      @chrisrote7641 3 года назад

      @@rockwelltradingservices like the rest great video and new subscriber here. Can I get that spreadsheet?I’ll use it as a worksheet to utilize before pulling the trigger on a buy.

  • @user-sx2yj4qs1g
    @user-sx2yj4qs1g 7 месяцев назад

    Yes making sense Markus. Good pace for me anyway.

  • @tonyvausa5712
    @tonyvausa5712 3 года назад +1

    Excellent presentation! Thanks

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад

      Hi Tony VA USA, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

  • @SamM-nb1gs
    @SamM-nb1gs 3 года назад

    This is the best explanation video on RUclips. Thank you sir

  • @horacio5078
    @horacio5078 3 года назад +1

    Yes yes yes!! Very easy to understand when you make it this simple!! Thank you

  • @ManjitSandhu
    @ManjitSandhu Год назад

    In the last two columns should the max risk not be difference between strikes *100 MINUS the premium received. You have not mentioned Minus Prem received and I was wondering if you missed it or my understanding is flawed (most probably it is the latter)

  • @pacoenriquez3183
    @pacoenriquez3183 Год назад

    Excellent video, I'd been looking for something like this for a while, thank you!

  • @PhanOT11
    @PhanOT11 2 года назад

    Great video! Thanks.
    So what is your favorite spread?

  • @thekidlizard3755
    @thekidlizard3755 3 года назад

    Great video really helps. Watched you on Benzinga this morning and looking forward to browsing all your other videos!

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад

      Hi Darrin, thanks! Have you seen my latest video on the "PowerX Strategy": ruclips.net/video/6C_ac36iXMw/видео.html
      I did it yesterday, and I think you're going to like it. 👍

  • @JoseSanchez-tp1zv
    @JoseSanchez-tp1zv Год назад

    Wao such an awsome explanation. Auto subscribed. Thanks for the content.

  • @cvceleheinu8689
    @cvceleheinu8689 3 года назад +1

    Markus this s/s is exactly what I needed to see I will study this further. thx I subscribed and like have a blessed day

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад

      I'm glad to hear it! I love to hear it when someone gets something from these videos! I'll see you on the next one, and have a Great 2021 my friend!

  • @owbee
    @owbee Год назад

    Great video. Thank you

    • @rockwelltradingservices
      @rockwelltradingservices  Год назад

      Awesome! Thank you for watching! ;) If you are interested to get the PowerX Optimizer you may get it here bit.ly/441OPel and apply the promo code "Rockwellspecial".

  • @MrAlly447
    @MrAlly447 2 года назад

    Great video!!!

  • @joycealanis
    @joycealanis 2 года назад

    nicely done!

  • @jituvb
    @jituvb 3 года назад

    Best tutorials comparing all options spreads. Thanks

  • @terryhoard7459
    @terryhoard7459 2 года назад

    Yes, making sense.

  • @Dmsoko457
    @Dmsoko457 10 месяцев назад

    Great explanation

  • @tf628
    @tf628 3 года назад

    I actually meant that I have Jan 2023 leaps and I want to sell short calls against them monthly just to make some money during the next year and a half. I don't know how the brokerage handles if the short call I wrote gets exercised and I only have the leaps to cover it. For example, I bought leaps at $52.50 now they are $71. Lets say I write call , stock goes up ( my leap goes up to lets say $75 ) and the call I wrote gets exercised and brokerage sells my leap at $75 to cover it. Do I lose the profit from $52 to $75 or just from $71 to $75 ?

  • @_justjoshin
    @_justjoshin 3 года назад

    After watching so many videos. Now it makes sense. Thank you so much!

    • @rockwelltradingservices
      @rockwelltradingservices  3 года назад +1

      Hi Jay Dumas, thanks for watching. And thanks for your feedback. Much appreciated. "See you" in the next video 👍

  • @C00ltronix
    @C00ltronix Год назад

    The spreadsheet is very useful. You should put that on your link.