In this video, we will explore an option spread strategy that can profit in up, down or flat markets.
Call option debit spreads have a long position and a short position. The long position profits as the underlying stock moves up in price. The short position profits as the underlying stock moves down in price. The short position provides downside protection if the underlying stock declines in price.
Call option debit spreads have several advantages over directional call option trades.
Whenever a spread trade can profit if the underlying stock price increases, decreases or remains flat at option expiration it will result in a higher percentage of winning trades compared to directional option trades and will make you a more successful trader.
In this video learn how to set up option spread trades that can profit in up, down or flat markets.