How to Trade Spreads on Tastyworks Mobile App (Vertical Spreads, Iron Condor, Butterfly Spreads)

In today’s video we’ll learn how to trade options spreads on the tastyworks mobile app. We’ll specifically cover both short and long vertical spreads, iron condors, and butterfly spreads. Vertical spreads: A vertical spread involves the simultaneous buying and selling of options of the same type (i.e., either puts or calls) and expiry, but at different strike prices. This can be done as either a long vertical or as a short vertical. Iron Condors: 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 spreads: A butterfly is an options strategy that combines bull and bear spreads with a fixed risk and capped profit. These spreads are intended as a market-neutral strategy and pay off the most if the underlying asset does not move prior to option expiration.