Thank you for the video. For a debit call spread - wouldn't it make sense to buy a very deep ITM call (say 0.99 delta with $0 extrinsic value) and sell ATM call (maximum extrinsic value)? Basically, the short call lowers the cost of the long call. Short call's extrinsic value decays - even when the stock price goes up. I am trying this with 0DTE SPX options
So to help make sense of the name debit spread, and so I can remember what it means, is it fair to say the “debit” relates to the idea that you are being debited a portion of the upside of the purchased call? If u have a better way to understand what is debited, please explain…
Thank you for this great video presentation on options trading! I always watch your videos to learn.
I watch you all time on CNBC. This was really helpful toward understanding Spreads that you discuss.
Same here.
Thank you for the video. For a debit call spread - wouldn't it make sense to buy a very deep ITM call (say 0.99 delta with $0 extrinsic value) and sell ATM call (maximum extrinsic value)? Basically, the short call lowers the cost of the long call. Short call's extrinsic value decays - even when the stock price goes up. I am trying this with 0DTE SPX options
How’s that going
The slides link is missing.
thanks for the master class
How do you manage ditm debit spread going or gone wrong?
How do you avoid early & surprise assignment? Just make sure to exit the trade before expiration? Dont let the debit spread expire? Thanks!
When you say "roll" your position", do you mean to sell your open trade/spread and buy a new trade/spread?
By "sell" I mean close out...
Yes, rolling is a close and reopen
So to help make sense of the name debit spread, and so I can remember what it means, is it fair to say the “debit” relates to the idea that you are being debited a portion of the upside of the purchased call? If u have a better way to understand what is debited, please explain…
37:41
I think u need to make small video as well please
I wouldn't be doing anything but credit spreads on Apple.