Vertical Put Spreads
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AuthorAJ Monte
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LevelSTU 300 Level
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Video time30-60 minutes
Course Description
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Here is what we will cover in this course
Max Profit vs. Loss & BE
What is the the max gain/loss? The Max gain is the most you can make on a short put spread is what you collect on the spread whereas the max loss is the difference between the strike prices minus the premium. Also, learn how to calculate your Break Even point.
Obligation vs. Right
If you are buying a put, and spending money to buy that put, you have the right to sell the stock. When you sell the put you're getting paid to perform or obligate yourself to make a trade. You are obligating yourself to buy the stock.
Trends
Uptrend vs. Downtrends make a difference on how to place a Vertical Put spread. Learn when & how to maximize profits by selecting the right time.