Option Spreads

An option spread is created when one option is purchased and another is sold simultaneously. The two options typically have different strike prices or expiration dates, and the trader who placed the spread order only has to come up with the cash difference between the option being bought and the one being sold. An option spread generally has a lower degree of risk and maximum profit potential than the outright purchase or sale of a single option.

TERRY’S TIPS STOCK OPTIONS TRADING BLOG

November 8, 2024

November 8, 2024 Terry’s Tips Trade Alert #3 – Rising Tide Portfolio

We continue chasing delta higher:

BTC 1 COST 15Nov24 905 put (COST 241115P905)
STC 1 COST 20Dec24 905 put (COST 241220P905) for a credit of $13.20 (selling a calendar) (100%)

BTC 1 COST 15Nov24 935 call (COST 241115C935)
STO 1 COST 15Nov24 960 call (COST 241115C960) for a debit of $12.15 (buying a vertical) (100%)

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Jon

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June 6, 2024

June 5, 2024 Terry’s Tips Trade Alert – Wiley Wolf Portfolio

We are closing put spreads to increase delta:

BTC 1 MSFT 21Jun24 402.5 put (MSFT240621P402.5)
STC 1 MSFT 19Jul24 435 put (MSFT240719P435) for a credit of $15.35 (selling a diagonal) (100%)

BTC 1 MSFT 21Jun24 405 put (MSFT240621P405)
STC 1 MSFT 19Jul24 430 put (MSFT240719P430) for a credit of $11.90 (selling a diagonal) (100%)

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Jon

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June 1, 2024

May 31, 2024 Terry’s Tips Trade Alert #3 – Rising Tide Portfolio

This completes rolling out and adds two call spreads:

BTC 1 COST 31May24 795 put (COST 240531P795)
STO 1 COST 21Jun24 800 put (COST 240621P800) for a credit of $13.45 (selling a diagonal) (100%)

BTO 1 COST 19Jul24 830 call (COST 240719C830)
STO 1 COST 21Jun24 830 call (COST 240621C830) for a debit of $7.00 (buying a calendar)

BTO 1 COST 19Jul24 810 call (COST 240719C810)
STO 1 COST 21Jun24 810 call (COST 240621C810) for a debit of $8.70 (buying a calendar)

Be prepared to change this (these) price limit(s) by $.05 or more in order to get an execution.

Happy trading.

Jon

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TERRY’S TIPS STOCK OPTIONS TRADING BLOG

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