How to Trade Bull Put Spreads (aka Short Put Verticals) | Officia…

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46 thoughts on “How to Trade Bull Put Spreads (aka Short Put Verticals) | Officia…”

  1. great content, however making trades where the potential loss is always significantly greater than the potential gain doesn't make too much sense to me. Maybe someone has an answer for that.

  2. If the short put has positive delta, the option price should go up if the stock price increase since they have positive correlation and not the other way around as you have mentioned.

  3. How is the short put OTM if the price is above the short put strike? Wouldn't it be ITM since it's bullish?

  4. If the long put is providing protection for the contingent holding you are forced to aquire…a phantom holding if you will. Any reason not to defer its purchase until needed..especially since then you would save time decay on your long put?

  5. I been watching video after video and studying hard these past 2 weeks on credit spreads. This video really cleared up so many questions and also showed me a different options platformed I didn't even know about. Thank you, TD definitely has the best learning center.

  6. Why when I go close my bull spread it just says working and never fills the order even when it haves high open interest on both legs of the trade thanks.

  7. is there a vid about pin risk? what would be max lost if underlying stock expires between the short and long put — or if width is large and expires between? If between, should you always buy/sell to close the day of expiration?

  8. Absolutely by far the most detailed and well articulated tutorial on any options strategy I have seen yet. I'm educating myself on options trading and this video clarified some important details and gave some very helpful general guidelines on navigating the entire process systematically and intelligently. Thank you.

  9. Do I get to keep the premium if I close the put spread early when price of xyz is above short put strike price?

  10. so you basically there’s a chance of you getting assigned only if the price is between your two strike prices?

  11. Awesome, thank you! Everything I needed in one clear video. This is the one I will watch multiple times.

  12. Can I get the workspace settings for this video? I don't know why I don't have the column `Cost` on my Positions grid.

  13. At 2:34 you state that you can exercise the long put to deliver on obligation to sell. I thought when you have a long put, you have a right to sell but not an obligation. What am I missing?

  14. One of thy favorite teachers to learn from. This is an absolutely exquisite explanation. Thank you!

  15. I have a put setup in paper money with sold 35 bought 30 and the price is 38 and I'm down $39 hmmm had a .46 credit

  16. how do u set up the chart below the option chain? when i chose analyze i do not see the chart displayed as what it was shown. mine is showing a single horizontal line?

  17. ​Very well made video. Thanks. I have a quick question​. In the situation where the stock is in between the short and long strike and it is several days prior to expiry and the other party decides to get me assigned (I am the seller of the Bull Put Spread). I have not planned for that additional expense (and let us assume it is an expensive stock like AMZN) and I do not have the cash in my account to buy 100 shares of AMZN (but I have the long call as a hedge). How does your brokerage handle it? Will they automatically take the long holding and cash it out and take care of the assignment??

  18. I have a question, I am trying to apply this example on my profile platform but it does not look like your in thinkorswim platform , Is this the regular Trade Screen page?

  19. What happens if you are assigned early on your short put, the price is above the strike of the long put, and you do not have enough money in your account to buy 100 shares of the underlying?

  20. I understood every bit of this. Most videos never tell us how to close options so I stay afraid to do them. Thank you for taking the time to be thorough on how these work!

  21. What a thorough explanation. The best.

    May i ask, what about buying power? How does this affect the bp of the account?

  22. Not gonna lie, one of the things I love most about you guys is that you take a lot of time to try and teach new investors and I really appreciate that !

  23. amaizing class…thanks you, Good teacher..Excelente explicacion…voy a volverme experto en Short put verticals con usted….I will be a good trader with you,

  24. I do not like it: first you are offering me to cut my profit from the CSP by buying a Put, then (in case the stock goes down) I have to sell the stock for a loss. Makes more sense to me to hold the stock if I get assigned and start selling covered calls and wait for the price of the stock to go up.

  25. Tengo cuenta Cash TD Ameritre..
    No puedo realizar los Spread.. porque no me asignaron la cuenta Margen que frustración..
    He estudiado mucho la operativa de los Spread.. y no puedo Operar

  26. why dont you tell your customers how your risk AI will close your positions on spreads when close to the in the money?
    that way they can ask "well then wtf is the point of buying the longer leg of a spread if not for protection"?
    If i wanna lose the equity of the trade then thats my prerogative sir. very disappointed in tdameri.

  27. why does my think or swim look different then mine? yours looks way more updated? I Just started on this software a month ago. So it should be the same. thanks for the info. great teaching.

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