Vertical Spread Options Strategies | The ULTIMATE Guide (11-Video Series)

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Learn the vertical spread options strategies in this comprehensive 11-part video series!

In this video, we start with a basic introduction to vertical spreads.

A vertical spread is an options strategy that consists of one long option and one short option of the same time and in the same expiration cycle.

For example, buying a call option with a strike price of $100 and selling another call option with a strike price of $110 (same expiration cycle) would create a 100/110 bull call spread.

There are four vertical spread strategies. Two of them are considered debit spreads and two of them are considered credit spreads:

1. Bull Call Spread (call debit spread)
2. Bear Call Spread (call credit spread)
3. Bull Put Spread (put credit spread)
4. Bear Put Spread (put debit spread)

In this ultimate guide, you’ll learn:

– Exactly how to set up the four vertical spreads
– How each strategy makes or loses money
– How time decay and changes in implied volatility impact the profitability of each strategy
– How to select expiration cycles and strike prices when setting up each of the four spreads
– When to take profits and losses when trading verticals

The topics are covered in 11 videos, so be sure to watch every video to become a master of vertical spreads!

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J Kantor says:

Thank you for the excellent explanation. I know this question is rudimentary, yet I can't find the answer anywhere. When placing this type of trade, do I "buy to open" the lower strike price ie $135 and "sell to close" the higher strike price ie $150?

kenza medjahed says:

great expert's options , I have a question about the name of vertical , horizontal and diagonal , they depend on the position of strike price and expiration date in option chain for example vertical : two options (call or put) with different strike price but the same expiration date so vertical here depends on the position on strike price in option chain and horizontal spread take two positions in the same type of option call or put with same strike price with different date so horizontal depends the position on the date on option chain , that's right ?? or there are others reasons , thank you so much .

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