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Vertical Option Spreads Explained - Options Strategies - How to Trade Options, Nasdaq

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Let me show the Correct Way to Trade Bond Futures Vertical Option Spreads Explained - Option Strategies options how to trade options trading options nasdaq how to trade options using vertical options spreads
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Text Comments (4)
Sam Haim (1 year ago)
Hi Jonathan, with Bond trading, you do the relative price but with stock options, you are a little bit directional, trying to find something with large potential. Right?
tawmoss1 (1 year ago)
Good strategy, except that statistically, your chance of realizing any gain is only around 18% and you have a rather large (82%) chance of loosing your $600 investment :( Personally, I'd rather have the odds with me and not against me, and even then, nothing is GUARANTEED ;) Cheers
Jonathan Rose (1 year ago)
you need to factor in the payoff in your math
Steve Williams (1 year ago)
For the sake of conversation, this may be the trader's paradox. I love knowing about options and having probability in my corner, but like you say, nothing is GUARANTEED! My problem with vertical credit spreads is that in order to make 1 you need to risk 4. It's great knowing the likelihood of that outcome, but that drawdown stinks if it goes against you. I find, in order to have the amount of defined risk I'm comfortable with, selling credit spreads just aren't worth it (in my account). Jonathan's trades have been very cool because there are many ways to define your risk and often they are based around a volatility inducing event that can really get an underlying to move. What I like most is that I can be involved vertical debit spreads for under $1. While I may not have a probability on my side, I have no problem stomaching a $1 loss, and it doesn't wipe out 4 previous wins. I see pros and cons to each side.

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