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Debit Spreads Explained - Bull Call Spread / Bear Put Spread

Jake Broe 36 views

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so I found I was assigned way above the average is this from being too far out of the money? for instance some body bought my call short leg because it was a better price?? So my follow up question is if I wanted to own 100 shares for cheap is there a strategy to get assigned??
Comment from : @gilbertmartinez6538

Given that your call is ITM, it only makes sense to exit position at last day right to max profit?
Comment from : @apotisapot

subscribed! 😁
Comment from : @jojo2519

Great vid, thanks!
Comment from : @CFO_100

Love thisss channel!!! Can you please tell me which broker this is your trading on
Comment from : @POSITIVEMEE11

This is good as it explains the key concepts of debit spreads However, what would be a proper trading plan using debit spreads?
Comment from : @ralphlauren3621

do you always buy the same amount of calls and puts contracts per trade or same dollar amount?
Comment from : @MisterHottie

8:55 what platform is that? Yahoo Finance?brDanny Tetreault
Comment from : @dannytetreault

Thanks so much Jake, I was getting too much anxiety before understanding spread options Calls and puts are much easier, but with spreads it's weekly profits for me You're a great teacher!
Comment from : @angelalvarez212

do you need 100 shares to execute this spread?
Comment from : @acoolghost8538

Does anyone have a video that shows how to close a stop limit order debit spreads on TWS?
Comment from : @kellymarchuk3875

At 4:30 Why can't I just close the sell call and keep the buy call when it gets to that point?
Comment from : @echolitis

What happens if someone exercised the call you sold out of the money? I know that’s 999 never going to happen but if it did?
Comment from : @MrFartyman44

Thanks Jake, 💯👍👏👏👏👏
Comment from : @tx8848

How to manage a debit spread gone or going wrong by rolling out or other methods, thanks
Comment from : @nandocame620

Does the DB Spread act as an instrument to, essentially, DISCOUNT a hedged position you've taken??
Comment from : @kelysee6527

is this the same thing as a poor mans covered call/secured put?
Comment from : @w1redrage

Great explaination Can I ask, is this you using Charles Schwab web based platform in your examples? Thanks
Comment from : @richards5875

dude, you're the bomb, subbed and will donate Brilliant vids the way you explain spreads I spent 65k on a trading course and they can't (or won't) explain how spreads work Keep up the good work
Comment from : @couldbanyone9318

Any videos explaining how to end these trades with your brokerage when the expiration date arrives
Comment from : @jbnomad95

Hi Jake, great video! Really clear Not sure I understood the last part If the options is out if the money don't they just expire worthless? From what you said it sounded like the loss is unlimited
Comment from : @eranozery

Really good thankyou
Comment from : @anthonyshaw7101

I just want to let you know I have been searching far and wide on an easy explanation of vertical spreads and you are an amazing teacher I finally get it hearing it from you brbrI have been a long time fan of yours and first started looking into your content when I got into selling covered calls and cash secured puts Currently, looking to do more research on the buying side but like you said sometimes you’re tying up so much money to potentially lose This is a great strategy to mitigate that Just a quick question though Is closing out the options the same as closing out any other option, you just do the opposite You sell to close the one you originally bought, and buy to close the one you originally sold?
Comment from : @waleedshaarani1897

so the debit spreads are a little more profitable than the credit spreads
Comment from : @Kindafu

Hello I’m trying to do a project for one of my finance classes, I am trying to do a Bull Call Spread for Apple but everytime I look at the strike prices in options most of the strike prices are well below the stock price of Apple which is 17040 can u explain why this is?
Comment from : @Oc9086

Hi Jake, I have a question I would like to apply Option Level 2 at Schwab, but it requires margin on my account If I am accepted, can I trade spreads or iron condor without using margin? I have enough money to trade, and don't want to use margin Thank you :))
Comment from : @hunghong9108

Hi JakebrIf your debit spread is deep in the money with a couple weeks before expiration, are you able to, and is there any benefit, to close the call option you sold?
Comment from : @pauljnot

clear explanation!
Comment from : @greenb6149

Great vid jake as always 🙏🙏🙏
Comment from : @alfredotoral5910

great video, easy and clear explanation thank you so much
Comment from : @uyenle6474

Hi Jake, question, when you are selling a credit or a debit spread, how do you make sure that both trades in the spread will execute simultaneously?
Comment from : @behrensf84

Am I using the wrong broker for options? My broker is basic schwab web platform and trading in a Roth My orders don't fill at the last trade price I have a buy to close at 45, and the last trade price dropped to 45 several times Is it universal among brokers to only allow 05 increments? Thanks for all the great videos
Comment from : @jl9484

Debit Spreads honestly helped me build up my smaller account With only needed as low as $50, it can add up over time Great video!
Comment from : @MannyCovington

I love Bull Call Spreads but I always buy the furthest dated LEAPS and buy the ATM Call & sell an OTM Call to increase my POP I usually look to close at 25-50 profit I'd say I've made money with this strategy at least 80 of the time
Comment from : @aw1078

Thank you so much this makes sense now thanks again
Comment from : @hassanem8731

So, I did do two credit spreads (my first times) and took profit at 50 on the first one, and just a bit of profit on the second for other reasons (I mistakenly trading on the day of earnings for that stock at close of market, so I got out before market close and learned to check that box beforehand) I did this the past two days in the week of expiration to control things better What grabbed my attention was the huge amount of risk for the small profit The was not satisfying me in the least, so (not knowing there were Debit Spreads) I kept messing around trying figure out how to do this differently and I discovered this option on my own, but needed confirmation I was not just about to destroy myself Of course, presto! Jake came on and gave me a name for this and how it works I also tried seeing how ITM trades with this would work, and now I know I can count on another video that explains that! The best channel I have liked and subscribed as the cost of learning Again, thanks Jake! [Total gains on these two trades was just over $16, fyi]
Comment from : @craigchambers4183

Informative Jake No more videos on Calls anymore?
Comment from : @shb377

Very interesting, I think I like the Credit Spreads better though
Comment from : @edgarfletes8196

Hi Jake, Great pair of videos! I'm sure you would ideally do vertical spreads on high volume securities, right? But if you were to do it on a low volume security, would it be possible for one leg of the chain to execute but the other not, leaving you with a naked call/put? Or does the broker treat this spread as a single transaction?
Comment from : @austindrury856