Published: Sept. 28, 2017, 6:01 p.m.
Today Brian is covering a short call spread (which is bearish) on AAPL. All of this applies on the put side, but in this episode, calls are being featured.
Specifically:
- What dynamics do you need to think about when trading short spreads?
- Look at the most at-the-money straddle to get an idea about pricing
- Example 1: November 17 expriation; 52 days out
- Selecting strikes
- What will this cost?
- What is the max risk? Reward?
- Example 2: October 6 expiration; 10 days out
- Selecting strikes
- What will this cost?
- What is the max risk? Reward?
- Which would you choose?
- How to close out the trade?
- How to roll the trade?
Do you have a question that you want answered on a future episode? Send them to Brian at theoptionsguy@invest.ally.com, or to the Options Insider at questions@theoptionsinsider.com.