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Trading For Newbies

Trading For Newbies - Vertical Call Spreads

Trading For Newbies

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.
Our first basic strategy, the vertical call spread

On this episode of Trading For Newbies, Ryan and Beef explain both buying and selling vertical call spreads.

A vertical call spread is created by simultaneously buying and selling two different call options at the same time. The action we take (whether we buy or sell) with the front option determines the direction of the trade, whether it's a bullish or bearish trade.

A long or short call spread works in exactly the same way as a long or short call option, but the spread has some interesting benefits compared to just buying or selling an option.

If you're interested in learning more about calls, make sure to check out our previous lesson on calls.

Episode Contents
  1. Buying A Call Spread
  2. Selling A Call Spread

About Trading For Newbies

This series will educate you, the beginning trader on the basics of options trading and the tastytrade approach to trading. Our goal is to get you to the point where you will be able to actively find opportunities in the market, enter and exit trades, and clearly articulate what you are doing throughout the process.


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