When we sell a credit spread, we have a defined profit and loss throughout the trade. If the stock moves against us and our spread moves ITM, we will see losses on the trade, but we can only lose as much as our defined risk up front.
Today the tastytrade crew explains how ITM spreads create a risk:reward profile that moves in our favor, the more losses we see, even though we need a low probability directional move for it to work out.
Tune in to learn more with a live Q&A as well!
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