T2W Bot

Staff member
In this article, I will go over three possible outcomes for a Bear Call spread at the expiry. Those scenarios involve the price of the underlying closing within the spread, above the sold call, and below the sold call.
Last week’s article, "Iron Condor Revisited", had addressed the issue of two vertical credit spreads. Since then, a student whom I shall leave unnamed, has emailed me pleading with me to explain to him a trade in which the student has gotten into without knowing much about spread trading. From the email, it could be inferred that the student has taken a bigger position from what is normal. Again, without disclosing anything more about the student, I will go over the facts of the trade. (I do have the student’s consent to share this freely with the Online Trading Academy community.)
I have included the chart here, as I usually do for my real trades, but I choose to white out the exact ticker. Thus, when referencing the underlying, I will use that worn out cliché of...

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baldonius

Newbie
Josip I think you hit the nail on the head with your final point. Going over past trades is what splits the trading pros from the pack. It can all help in finding a consistent system that you can use by tweaking based on past mistakes.
 
 
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