Vertical Spread options trading.

<p>In this episode Larry and James go over last weeks trades and new positions as well as go over trading vertical spread options strategy. A vertical spread involves&nbsp;buying and&nbsp;writing puts or calls at different strike prices. Each spread has two legs, where one leg&nbsp;is buying an option, and the other leg is writing (selling) an option.</p> <p>This can result in the option position (containing two legs),&nbsp;giving the trader a credit or debit. A debit spread is when putting on the trade costs money. For example, one option costs $300, but the trader receives&nbsp;$100&nbsp;from the other position. The net premium cost&nbsp;is a $200 debit.</p> <p>If the situation were reversed, and the trader receives $300 for putting on an option trade, and the other&nbsp;option costs $100, the two option contracts combine for a net premium credit of $200.</p> --- This episode is sponsored by · Anchor: The easiest way to make a podcast. <a href="https://anchor.fm/app">https://anchor.fm/app</a> --- Send in a voice message: https://anchor.fm/wstrades/message Support this podcast: <a href="https://anchor.fm/wstrades/support" rel="payment">https://anchor.fm/wstrades/support</a>