Options Playbook Radio 52: Front Spreads, Part Two

Published: March 20, 2015, 3:45 p.m.

Options Playbook Radio 52: Front Spreads, Part Two

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In this episode, we\u2019re covering front spreads. For those of you with the hardcover book, that information can be found on page 80 (calls) or page 82 (puts). You can also find everything on OptionsPlaybook.com.

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Today, Brian discusses:

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  • A review from last week, what is a front spread, what about risk, etc.
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  • Why do this instead of a cash-secured put?
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  • Let\u2019s look at this using AAPL as an example
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  • Comparing a covered call and front spread
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  • What price does the underlying need to hit to get a benefit?
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  • Ways in which the front spread works better
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  • The tradeoffs between a covered call and front spread
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  • When does a front spread make more sense?
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  • Now again with puts
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