I have absolutely no idea whatsoever what you are talking about here! Of course I never traded options and just started with mom, spins,t this trading too premature for dopes like me?!?!
Thanks harold
Stops. Dan usually uses wider stops on the spread trades then he does on the long calls / puts. That said, spread trades move much slower than straight calls and puts. They are a great vehicle for traders that cannot watch the market all day.
I’ve done covered calls, and know that if the stock goes to that higher strike, I will have to sell my shares. In a700/710 Bull put spread, if apple spikes above 710.00, will I have to sell 100 shares of apple?
Dan, great videos, I understand the purchase of spreads but like the above posts a little confused on the selling (closing). If the price of aapl was $730 upon expiration, would my broker automatically close out my positions and debit or credit my account? Would there be actual buying or selling of shares? Would i want to get out prior to the $730? I (we) need a little guidance on exit strategy! Thanks!
I have absolutely no idea whatsoever what you are talking about here! Of course I never traded options and just started with mom, spins,t this trading too premature for dopes like me?!?!
Thanks harold
I get the spread trades. I get the maximum risk. How do I protect myself against the risk if I can’t watch what’s going on all day, every day?
Stops. Dan usually uses wider stops on the spread trades then he does on the long calls / puts. That said, spread trades move much slower than straight calls and puts. They are a great vehicle for traders that cannot watch the market all day.
I’ve done covered calls, and know that if the stock goes to that higher strike, I will have to sell my shares. In a700/710 Bull put spread, if apple spikes above 710.00, will I have to sell 100 shares of apple?
Dan, great videos, I understand the purchase of spreads but like the above posts a little confused on the selling (closing). If the price of aapl was $730 upon expiration, would my broker automatically close out my positions and debit or credit my account? Would there be actual buying or selling of shares? Would i want to get out prior to the $730? I (we) need a little guidance on exit strategy! Thanks!