Time decay plays a major role in profitability when trading vertical spreads.
Not only do most vertical spreads require the stock price to move a particular direction, but all vertical spreads rely on time decay to reach profit levels close to the maximum profit potential.
In this video, you’ll learn why a directional movement is often not enough to generate significant profits when trading vertical spreads. Additionally, you’ll learn how extrinsic value impacts the prices of vertical spreads, and how the decrease in extrinsic value is a key component to profiting when trading the four vertical spread strategies.
FULL GUIDE: https://www.projectoption.com/vertical-spreads-explained/
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