In this episode, Brian explores long spreads. Specifically, long call spreads and long put spreads. These can be found on pages 60 and 62, respectively, of The Options Playbook. This is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.
- The dynamics of spread trading
- Using AAPL as an example
- What to consider regarding forecasting and timing
- The value of the spread does not provide quick rewards
- Selecting strikes
- What is the maximum risk?
- What is the maximum reward?
- Always look at how much time premium you have
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