In the Money Debit Spreads - Good Idea?

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Information In the Money Debit Spreads - Good Idea?

Title	:	In the Money Debit Spreads - Good Idea?
Lasting	:	11.53
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What happens if you get assigned on one of these ITM debit spreads?
Comment from : @cliffpinchon2832

Can you please explain Deep In The Money Put Spreads pros and cons with Deltas in 80 to 90 spread
Comment from : @richardcruz207

is this considered margins?
Comment from : @black_guardd1194

LOVE YOUR VIDEOS , SO CLEAR AND CRISP
Comment from : @bikramnayak9549

Wow, very well done video! One question if you buy an ITM spread, wouldn't the short option always be at risk of assignment since you want the ITM spread to stay ITM?
Comment from : @zadokmotorfreight2423

on that FB debit ITM spread why you didn't buy to open the 335 strike and sell to open the 330 strike I though debit spreads are buying the strike closest to the stock price and selling another further from the stock current price You lost me there this is discussed 6:52 in the video
Comment from : @romeoking3191

Great job on breaking this down
Comment from : @cfb7000

So… The stock can trade sideways and you still make money if you’re trading an ITM debit spreads?
Comment from : @albertodeulofeu5277

What about theta? What if I don’t wanna be assigned and just wanna sell the spread for a profit?
Comment from : @albertodeulofeu5277

What happens when these debit spreads expire in the money at expiration date We will receive the credit right?
Comment from : @sivakumaranbazhagan1672

Isn’t the idea to get assigned and exercise the other contract to achieve the max profit? Example TSLA SELL CALL 185 BUY CALL 180 net debit of $275 max profit of $225 Ideally I want to be assigned and exercise the 180 call correct?
Comment from : @qytexui7893

assignment concerns will be a big factor in the decision whether you pick a put or call spread (inversely)
Comment from : @JohnSmith-ms8nj

Awesome video Thank you for sharing your knowledge!
Comment from : @vinceb3

a little tongue tied lol, but a good video, jake i like how you highlighted the buy and sell on the option change visuals are key when explaining anything complex
Comment from : @bsmba1347

Yeah, I think you missed the point of trading in the money spreads
Comment from : @venician2face

Good job on this, explaining the basic logic of these spreads But for me personally, I'm looking for more information on how to decide which strategy is appropriate for a given stock at a given time
Comment from : @TheMadMariner

Great video Jake, my question is if do ITM debit spread what are my rish of being assigned, and will my other leg of the option save me from going into deficit I am doing some paper trades to get some practice buy the paper trade on Thinkorswim won't assign me any shares So im kind of in the dark ITM spread have higher chance of landing the profit zone if you look at the optionstrat thats why i use them
Comment from : @willgordon5737

Options are such a brain twister It takes months to get used to them
Comment from : @willgordon5737

If I open an in-the-money put debit spread, can the sold put be exercised before expiration?brWhat happens if this is the case? I would have to sell 100 shares of this stock?
Comment from : @knm185

Hi Jake, Can we do Buying a Call option ITM/ATM and sell a Call option OTM? Abrahm
Comment from : @torontoinoneday5605

What can happen if the width of the spread is increased?
Comment from : @torontoinoneday5605

You can create a debit spread using deep itm calls It will have a higher probability of profit To reduce the max possible risk, you can sell otm credit spreads (provided the distance in between it's legs isn't hugher than that of the debit spread's legs) You can even totally recover that max possible risk at some point after which, any otm credit spread with a similar width will have 0 risk
Comment from : @richardvonmeyer

Also, ITM vertical spread, unlike the OTM counterpart, is theta positive
Comment from : @alfeim12345

Great video Very clear explanation
Comment from : @pjstieglmayr

So is a debit spread one or two day trades?
Comment from : @Red-Eagle

If i opened an ITM call debit spread, would I need to close out early? Or can I let it expire worthless?
Comment from : @ohh_mendozuhh

I like credit spreads, been bitten by them in the past, you have to watch the market I'm not a big fan of the 'negative' risk ratio though with credit spreads (risk $4 to make $1) I'd prefer other strategies out there that provide 'positive' risk ratio (risk $1 to make $3 or $4)debit spreads, butterflies, calendars, so on Great video though, love it!
Comment from : @kanegs1

Great content, Jake Have you ever experimented with backtesting to “optimize” deltas for spreads?
Comment from : @wmbrice

Video starts at 3:50
Comment from : @Grimzy-

3:45 “who the heck is buying in the money call contracts” me I only buy in the money call contracts Unless you do a leap I would never buy out of the money call contracts and honestly especially with a leap i would still go super deep in the money What do you think Jake? Do most people buy OOTM? I’ve never understood why or is there an advantage besides being cheaper? What do you buy with leaps Jake?
Comment from : @misaelarredondo7933

I think I like OTM Put Credit Spreads more than ITM Debit Spreads because I can’t be exercised on my short positions in the PCS until that short strike is breached & the stock price for my short position is now in the money However, with the call side I do feel like I am able to exit & get more of my profit sonnet compared to the PCS
Comment from : @passiveinvesting_automation

Jake What page are you demonstrating on? that layout for Options is nice
Comment from : @robertmarsico493

Keep in mind this also profits from vol expansion
Comment from : @marksoberay2318

Very nice thx
Comment from : @marksoberay2318

Great video Jake👍
Comment from : @fongluo677

Good idea, but honestly the way you explained it, if I didn't already know how to do this, I wouldn't understand your explanation
Comment from : @thomaswinter739

Great video Jake It seemed to me that in your example it would be better to sell the put spread (would receive $100 and risk $400) versus buying the call spread (would pay 415 to make $500) making the assumption that FB stayed above $340 until 17 September
Comment from : @nicks8459

Good stuff Never thought about this
Comment from : @hakeemjones8268

My favorite tools learned here so far are the wheel, dead hand and credit spreads, the debit game seems too riskybrThanks for explaining these financial tools, I'm overcoming my Dunning Kruger issues!
Comment from : @Highlyskeptical

Thoughts on VGT vs other popular ETFs?
Comment from : @ubgradde8917

Hi Jake brQuestion So delta measures the probability of ITM by expiration date and the rate of option price change per $1 in the u/l stock? brI'm guess I trying to take in too information and I got confused 🤔
Comment from : @leejmuam1

You are get too complicated for me to follow
Comment from : @ronaldlipp1293

Great video! brbrDefinitely one that’ll I’ll have to watch again!
Comment from : @AskDyor

Great work Jake! I opened an ITM bear call spread on AMD today 20 of max profit by the end of day today
Comment from : @donvin999

Jake, the thing that you need to cover is the fact that call debit spread have risk of early assignment due short deep ITM side Which will not be a problem cause you would have ITM long call as well Because of that some brokers might charge higher margin requirement for the same ITM call debit vs OTM put credit spread
Comment from : @Atropin4ik

Trying to think how I can watch this video in reverse :-) Looking for ITM Credit spreads next Did one today in MRO buying the Aug 13 Put Strike of 12 and selling the Aug 13 Put Strike of 125 for a credit of 37 and risk of 12 Maybe I am all mixed up, but I have your graphics on my desktop and would maybe call this an ITM Bull Put Credit Spread
Comment from : @craigchambers4183

Perfect timing Jake, I literally just did an ITM call spread today with TXN, trying to get more familiar with these Still wasn’t too clear with them, so this really helpedbrbrAdditionally Jake, I remember a few months back you recommended some books in one of your videos I don’t remember what video that was, but do you mind replying with those finance books you recommended?
Comment from : @mrwsilva1