Credit Spread Options Strategy Explained | Interactive Brokers Tutorial
Вставка
- Опубліковано 31 лип 2024
- Interactive Brokers kvli.link/ibkr
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0:00 - Intro
0:24 - What is credit spread
1:01 - How put credit spread works
2:00 - How call credit spread works
2:33 - Put credit spread visualization
4:16 - Call credit spread visualization
5:41 - Best practices
10:20 - Managing losing position
12:02 - How to improve your chance of success
14:08 - Step by step guide
16:12 - Conclusion
None of this is meant to be construed as investment advice. It's for entertainment purposes only. Links above include affiliate commission or referrals. I'm part of an affiliate network and I receive compensation from partnering websites.
Interactive Brokers kvli.link/ibkr
Free Options spreadsheet ko-fi.com/s/94f3ab6baf
INVESTING
► Interactive Brokers kvli.link/ibkr
► Webull (free stock) kvli.link/webull
► Moomoo SG (free stock) kvli.link/moomoo
► Tiger Brokers (free stock) kvli.link/tiger
► CMC Invest kvli.link/cmcinvest
► Longbridge kvli.link/longbridge
► uSMART (free stock) kvli.link/usmart
► ProsperUs (free stock) CODE "KELVIN20" kvli.link/prosperus
► POEMS Cash Plus kvli.link/poems
► Saxo kvli.link/saxo
► FSMOne CODE "P0425931" kvli.link/fsmone
► moomoo US (free stocks) kvli.link/moomoous
► Syfe kvli.link/syfe
► StocksCafe kvli.link/stockscafe
ROBOADVISORS
► Endowus (free $20) kvli.link/endowus
► Syfe kvli.link/syfe
► MoneyOwl (free $20) kvli.link/moneyowl
► StashAway (50% off fees) kvli.link/stashaway
► AutoWealth (free $20) CODE "KelvinLearnsInvesting" kvli.link/autowealth
► UOBAM Invest kvli.link/uobaminvest
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► Crypto.com app (free $25) CODE "kelvinlearnsinvest" kvli.link/cryptoapp
► Crypto.com exchange CODE "kelvinlearnsinvest" kvli.link/cryptoexchange
► Coinhako (20% discount) kvli.link/coinhako
► Coinbase (free $10) kvli.link/coinbase
► Independent Reserve kvli.link/independentreserve
► Tokenize Xchange kvli.link/tokenize
► Ledger kvli.link/ledger
► Trezor kvli.link/trezor
RESEARCH
► Seeking Alpha (offer price) kvli.link/seekingalpha
► Simply Wall St kvli.link/simplywallst
► TradingView kvli.link/tradingview
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► Trust Bank (free $10) CODE "R2MQBA4S" kvli.link/trust
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► DBS Paylah (free $5) CODE "AHVULE614"
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LIFESTYLE
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► Ohmyhome kvli.link/ohmyhome
Can I ask so for put credit spread , you don’t have to set aside money to purchase this 100 shares correct ? As we already got a safety net by buying at a lower put price. AND as for call credit spread, we don’t have to have 100 shares of the stock on hand because we got a safety net by buying at a higher call price.
Please do more of this option strategies!
Before trading credit spread, do understand that the risk of early assignment for the short leg. And understand on how to fix an unfavourable position.
How do you fix the trade going against you?
Hi Kelvin, other than interactive brokers, how about using moomoo for options trading? is it as comprehensive features?
Hi Kelvin, thanks a lot for your sharing. May I know if the stock price is ITM of the selling position but OTM of the buying position. Will my option be exercised?
Whats the rational to risk $70(max) for $29(max)? And on the 1/3 risk to reward, whats the basis? Thanks .
When is ur option course coming out boss. We know all this tasters are just leading to that!
Hi Kelvin, can I ask if my credit spread are both in the money during expiry will IBKR close both legs and credit me the loss/gain so that I don’t have to do it manually by myself?
When u open the credit spread, you will already receive the premium.
When it ends up in the money, ibkr will auto deduct the loss from your account
For this strategy, we will close the off trade on 3 dots to take profit or loss. I noticed there is a buy/sell. Do we used the option as well?
Better to use Close to avoid any mistakes
Hi, like to check, if the spread expires and you are still "in the money", will IKBR exercise the other leg of the spread to cap the loss? is it an automatic feature of IKBR?
Yup it will!
Hi Kelvin, thanks for the video! May I know how to know whether I have obtain 50% profit for the credit spread in IBKR? How to see? Gam sia.
Average price is the credit you collected.
Unrealized p&l is the current value of the spread
If unrealized P&l is 50% of average price, u can close
@@KelvinLearnsInvesting Which leg should we close, short leg or long, or both? Thanks!
Hi Kelvin thanks but why my IBkR don't show real time pricing for option??
It doesn’t. Need to pay for live pricing
Hi Kelvin, if the stock price at expiry is between the short leg and long leg, you will still get assigned right?
Yes
Hi Kelvin, how are you able to use Options Ai? Tried to apply the account. It mentioned it is only available to U.S. residents
No need to sign up. For example, just open this website, you'll see the stuff u need
tools.optionsai.com/earnings/TSLA
yea same question. TQ.
Can I still insert a stop-loss if I did not set it up during the time of purchase?
Ya can!
Hi Kelvin, is the OptionsAI need to pay for subscription fee?
No need to sign up, just open the the site and you'll have everything u need
copy here copy there
its not remaining 40% but remaining 60% for the 35 days.
For the limit price during closing the trade, is it considered the premium and we enter the max price under bid?
Yup, the limit price is the premium that we'll receive
Hello Sir, I am from UAE.
I want to open account in IBKR.
But first I need to understand about experience in trading options in IBKR.
So how can I contact you.
I am already selling options in Indian market and having sound knowledge of options writing. I want just some clarifications.
So please advise how can I contact you.
Please help me.
Thank you in advance.