On this episode of Trading For Newbies, Ryan and Beef explain both buying and selling vertical put spreads.
A vertical put spread is similar to a call spread but is instead created by simultaneously buying and selling two different put 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 put spread works in exactly the same way as a long or short put option, but the spread has some interesting benefits compared to just buying or selling an option.
- Buying A Put Spread
- Selling A Put 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.