In this video, we will explore an option spread strategy with ‘built in’ profit potential when the trade is initiated.
Due to option pricing characteristics, this spread strategy can profit if the underlying stock price increases, decreases or remains flat at option expiration.
Profiting on your option trade when the underlying stock is up, down or flat will result in a higher percentage of winning trades and can give you the confidence you need to become a successful trader.
This spread strategy allows you to trade higher priced stocks like Apple, Google, Mastercard and Amazon for as little as $300 which is a much lower cost than a call option purchase for these high priced stocks. The maximum risk is the cost of the spread.
This spread strategy is ideal for smaller accounts as a portfolio of these spread trades can be traded in a $5,000 account.
Learn how to set up option spread trades that can profit in up, down or flat markets.