Option Credit Spreads - Max Profit? Max Risk? Breakeven?
Hope you all had a good week.
Are you selling option credit spreads?
Put option credit spreads? Call option credit spreads?
If so, it's very important to know the maximum risk, maximum reward, and the breakeven levels.
It's simple math.
I also get many questions from readers about the scenario of the stock trading in between the strike prices either at expiration or before expiration.
What happens in that case?
In today's video, I explain how to calculate all of those numbers, and what happens to the spread when the stock finishes in between the strike prices. Can you get assigned early?
Also in the video, I analyze the stock charts as part of my "Saturday Synopsis", to comment on last week's trading activity and what may lay ahead for next week.
Just click below to watch the video.
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Lastly, shoot us an email with any questions or feedback you may have. We love hearing from you!
Have a great weekend!
Until next time.