Vertical Spread Trade Examples (Profitable & Unprofitable)

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The vertical spreads options strategies are among the most popular strategies out there. They are simple, directional, defined-risk strategies that are constructed by simultaneously buying and selling an option of the same type, in the same expiration, but with different strike prices.

The names of the four strategies are:

1) Bull call spread (buy a call + sell a call at a higher strike price)
2) Bull put spread (sell a put + buy a put at a lower strike price)
3) Bear call spread (sell a call + buy a call at a higher strike price)
4) Bear put spread (buy a put + sell a put at a lower strike price)

In this video, I walk through a profitable and unprofitable example for each of the spreads, so you can see how these strategies perform as the stock price changes and as time passes. The performance of these trades is specific to these stock price scenarios, but you will become more familiar with how the spreads will perform in the real world.

Be sure to leave a comment down below with any questions you may have!

=== RECOMMENDED VIDEOS/RESOURCES ===

Vertical Spreads (Basics for Beginners): https://www.projectfinance.com/vertical-spreads/

Bull Call Spread: https://youtu.be/cN6Hj2DZFek

Bull Put Spread: https://youtu.be/fSMCL5U9M-I

Bear Call Spread: https://youtu.be/qfai6_DvFMw

Bear Put Spread: https://youtu.be/-IIRUXrOhD8

Stock Options Trading 101: https://youtu.be/3bELT5FZCic

Why Early Exercise/Assignment is Rare: https://www.youtube.com/watch?v=7pTb1a5IgKM

Options Trading For Beginners (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o58ldr-5zSn4ROx4SZG7Jyo

tastytrade Tutorials (PLAYLIST): https://www.youtube.com/playlist?list=PL33AZa4cv-o56a2BO3jpK_PBUFe3FdvxP

Option Pricing EXPLAINED: https://youtu.be/-nnJ4pMBaxA

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