In today’s video we’ll learn how to create various different spreads on the tastyworks platform.
Timestamps
0:00 Intro
1:04 Option Chain Explained
4:45 Long Call Spread
11:47 Short Put Spread
15:45 How to Place an Iron Condor
21:12 Butterfly Spread
Vertical Spreads
A vertical spread is an options strategy that involves buying (selling) a call (put) and simultaneously selling (buying) another call (put) at a different strike price, but with the same expiration. Vertical spreads limit both risk and the potential for return.
Iron Condor
An iron condor is an options strategy consisting of two puts (one long and one short) and two calls (one long and one short), and four strike prices, all with the same expiration date. The iron condor earns the maximum profit when the underlying asset closes between the middle strike prices at expiration.
Butterfly Spread
A butterfly spread is an options strategy that combines both bull and bear spreads. These are neutral strategies that come with a fixed risk and capped profits and losses. Butterfly spreads pay off the most if the underlying asset doesn't move before the option expires.
