Trading Options: Bull Call Spread (Vertical Spread Strategy)

Do you ever have to close out your trades to make money? It seems if it expires somewhere between the strike prices won't you lose if you don't close out your trade? What am I missing?

Great Sasha. Live long. How can I reach you? I need to learn more from you. How do I do that?
SM FERDOUS
Bangladesh

Thank you I may listen

i know this is an old video, but does an excellent job of explaining vertical spreads. I have watched a ton o videos and they miss out subtle details which prevented me from fully understanding the various types of options. Thanks!

Omg imagine buying options when amazon was that cheap or even shares

I’ve been trading for a while but my first trade f*cked me. I made new rules for vertical spreads and they’ve been working fantastically! https://www.reddit.com/r/options/comments/a8ljfj/my_googl_995_put_spread_expired_atm_and_now_i/?st=JPZLWFBT&sh=07aeecd3

Am I the only one who still confused?

LOL AMZN at < $400! almost $1,885.

I'm going to start papertrading. I need to use these techniques carefully. Thank you for the basics..

thank you mate , it helped me a lot in my CFA studies

hi I have a question when you buy multiple contacts and sell them on a vertical spread should your expiration date be 30 days or more to execute that strategy?

What is this software that you use

Sasha.. hi!… mmm online calculator risk graphic options?

So say I want to rotate between Bear Call Spreads and Bull Put Spreads, selling the open and buying to close a little further out. Would it be viable to choose strike prices at 90% OTM or roughly 5-10% Delta? Mostly for trading indices. I've seen some traders say do around 70% OTM for higher premiums but also a little riskier that the stock jumps or drops during the duration of that months contract.

hi Sasha, what trading platform do you recommend. Also, is the following statement correct "for iron condor, the max loss of the upper leg is the difference between the two upper strike, whereas the max loss of the lower leg is the difference between the two lower strike" ? I'm confused on this. thank you

If a bull call spread goes against you slightly 1 week before expiration , is rolling the spread a good idea. I'm not sure how to calculate the roll?

How do u exit a weekly deep in the money vertical spread if the stock price goes above the short call?

I've only trade stocks, the think that is not very clear in options is that I could setup a vertical spread creating buy and sell call contracts, but what if only one of them is sold and the other is kept open. On every video it seems that all option contracts are under the assumption that they will always be sold, which doesn't seem like reality. Am I correct to assume that you have to create attractive contracts so ppl will actual buy them or anything sells?

Funny watching this with AMZN now around $1k. But great video.

So when selling a put or selling a call, I assume I need to actually own the underlying shares?

Why can't you do a bull call spread where the long and short are both in the money? Is it because 0 option interest or volume?

What platform is this?

how about Implied Volatility?

Would trading the two single calls cost the same as trading them together as a vertical spread?

How do you close a vertical spread early or close one or two contracts out of a group of contracts using ThinkorSwim?

What happens if the contract reaches expiration?

Sasha can i buy and sell a call within 10 minutes ? If desired strike price is reached ? Do i need to wait untill someone buy my option ? it's the same like stock trading?

One of my fears of selling a call or put is to get called or to get assigned. What is the likelihood of those events happening from selling options?

Do we necessary have to exit the position we took or what if it expires can u explain that too, it will be good.

When putting on a Bull or Bear Call Spread are you required to own at least 100 shares for the call you wrote? Also, when putting on a Bull or Bear Put Spread, should you have enough money in your account to purchase shares for the put you sold?

amazing video again. sasha can you please tell me if skew effects vertical spreads and how to avoid it?

I'm a bit confused. a vertical call spread means that you will buy one call and sell one call. I get that. However how is your risk defined if the stock crashes to zero? i mean, when you buy a call, i thought you can only buy the stock if it goes above a certain strike price, not below…right(which would be buying a protective put).

also, is it okay to just let the options expire?

when you sell the out of the money call instantaneously you receive a premium for selling the contract. The buyer looses money daily as a result of the contracts theta decay. How are you earning additional income from the theta decay, when you already received the premium when you sold the option :s?

A bullish call spread is bullish on direction. Is it also bullish on volatility?

Which software you are using for payoff simulation ????? Thanks in advance….

Can you describe SELLING a deep in the money trade? Can that work?

I took a udemy course on a different subject by you. I can't remember what it was but it was not about Options.

This is a BRILLIANT explanation and I subscribed to your channel. Thanks so much I am going to watch all your videos.

nice video. if you own a stock but its deep in red. can you buy call and sell x2 the number of contract you buy increase you potential profit even more. and in same ticker you buy put and sell lower price 2x the number put bought. This way you are A. doing for credit. B. reaping higher return. C. winning no mater what happens. What you think?

to sell a call you must own a call… why would you already own a call at 370? was there a trade that led up to this setup?

Hey, I'm trying to grasp options concepts, could you answer a quick question? If I set up a bullish put or call spread, and the stock price dips below my sold put contract, what would happen if the person you bought my contract decided to exercise the option early before the expiration date? Does this happen? Would I be out of luck since the broker would exercise my bought option to cover?

How do you select the strike price. CDo I have to buy ITM call. If yes how deep ITM?

Another great video…would be nice IF you could stat from the beginning as to why are we doing this vertical ???

Great video

Sasha,
Nice video.  What program are you using that shows these stats?

Nice Video!!!