Understanding Debit vs Credit Spreads l Options Trading - Which is better?

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  • Опубликовано: 29 ноя 2024

Комментарии • 29

  • @tonydavis7088
    @tonydavis7088 3 года назад +3

    Hey Tony, My name is Tony too and I just want to congratulate you on your new addition to your family first of all. Secondly, I thank you for your honest and straight forward style of teaching Options Trading. I thank you for not teaching in such a way of constantly talking about money and thousands of dollars that people can make if they do this as if to motivate them to hurry up and spend their money or to join Options Play the way the many scammers do. Your teaching videos are so full of details as if you are truly and honestly trying to help your viewers to get this information and become successful in life. Thank you again and I will be listening and trying my best to get this everyday. God bless you and your family. Sincerely, Tony Davis of Charlotte, N.C.

  • @SandpitCrew
    @SandpitCrew 3 года назад +6

    Thank you for this, another premium content. Easy to understand and well explained.

    • @OptionsPlay
      @OptionsPlay  3 года назад +1

      happy to hear that! Thanks for watching!

  • @gracechan5345
    @gracechan5345 3 года назад +4

    Thank You again! Tony! Great to watch you again this week!

  • @venkateshramadhyani8149
    @venkateshramadhyani8149 3 года назад +3

    I agree and always like to hear from Tony. I would also want to know more on the margin with the credit spreads.

  • @410nikko6
    @410nikko6 2 года назад +2

    I just found you not long ago...I really like the way you explain things..thnx much

  • @SolidBased
    @SolidBased 3 года назад +2

    There’s stocks that rip everyday that’s why there’s more credit spread opportunities lol!! And why I prefer debit spreads!

  • @rosalinacilani5106
    @rosalinacilani5106 3 года назад +6

    Another video that I couldn’t live without. I love your insight into everything. Thank you!

  • @michaelb1544
    @michaelb1544 2 года назад +2

    Great stuff Tony! Is there a chance that although the greeks are similar, leading to expiration (4/5 days before expiration), assuming that the underlying is slightly out of the money in both cases, credit spreads (short call spread) will earn more money than an identical debit spread (long put spread), whereas at the end they will be equally profitable? it feels like in the latter the value of the shorted put is going to rise, eating into the profits seen from the long put, whereas in the former both will lose value?

  • @TheStockAlchemist
    @TheStockAlchemist 5 месяцев назад

    You mentioned to get out of a credit spread when it reaches 21 days to expiration. What was the original DTE? 45 days? Also, do you have any videos on how to get a directional bias?

  • @ray.d7054
    @ray.d7054 3 года назад +5

    Great explanation and demonstration Tony easy to understand and learn. Thank you, very helpful.

  • @AM-yd5dt
    @AM-yd5dt 3 года назад

    Great content Tony especially your P&L simulator when putting in trades.... Learned something new about directional view (mild vs significant) when choosing debit vs credit spreads.... I was focusing on IV only thus far.... Great value added Tony.... Thank you

  • @kane99560
    @kane99560 Год назад

    great info...idk know if i see the purpose of debit spreads tho....if i think a stock will make a huge move i am just gonna flat out buy the calls. debit spreads feels like youre not sure about your conviction so youre capping your gains but minimizing your risks which for me kinda defeats the purpose...if i doubt the move i am not buying either. my 2 cents

  • @passivedividendsoptions
    @passivedividendsoptions 3 года назад +1

    Very informative video, I have used both in the past. And think they both can be great strategies to use. Just depends on environments, your risk tolerance & different styles as far as which ones could be better.

  • @unawant1
    @unawant1 3 года назад

    i would sell a credit spread at support, not resistance, correct? You highlighted at 25:41 - to sell a credit spread at resistance & buy a debit spread at support? Did i hear that right? Are you looking at call or put? A Put Credit spread will be at support, a call credit spread at resistance, right?

  • @Obi2020-c8x
    @Obi2020-c8x 3 года назад

    Can’t you buy ITM debit spreads for short term

  • @anandukanagaraj
    @anandukanagaraj 3 года назад

    Why credit spread strategy have to close the trade at 21 days?

  • @RichardHoltVen
    @RichardHoltVen 9 месяцев назад

    2

  • @scottogieva7728
    @scottogieva7728 3 года назад

    I don't understand anyone, I want to know which one is best

  • @rktile8966
    @rktile8966 3 года назад

    At 13:00 you talk about being break even at $14.50, you forgot to add the 54$ cost of contract. In reality you are not break even until $15.04

  • @johnliang7587
    @johnliang7587 3 года назад

    Sell Credit Spreads

  • @yatishanand1705
    @yatishanand1705 3 года назад

    P Please p

  • @beck4218
    @beck4218 Год назад +1

    There is no difference between a credit and a debit spread. Long the 14/16 call spread + long the 14/16 put spread (debit) = a long $2 box. It's an arb. So a long cs = the short ps. So neither is better.

  • @paulreilly5987
    @paulreilly5987 11 месяцев назад

    Big effort to make $35…

  • @emannuelchildish8022
    @emannuelchildish8022 3 года назад

    Hey Email me an apology and we can go to do stuff. Get help? whatever you want. Ill help after you get some help