Comments by "" (@money2024) on "Passive Income With Put Credit Spreads - Option Trading For Beginners" video.

  1. Currently in the making of a very similar video to this. Will be posted on Friday 😁
    7
  2.  @pikelele  Yeah, it's a little tricky to understand at first, but once you get the hang of it and how/when to take out profits early, it'll become second nature. I'm actually editing a video right now about how credit spreads work. I'll be posting it Friday, just in case you're interested
    2
  3.  @eVghtPlays  You went from $128 to $928?? With just spreads?
    2
  4.  @eVghtPlays  They can't sell because you set the unrealistic price, or they can never sell for you, regardless?
    1
  5. Same here 🙌
    1
  6. A put credit spread makes more money as time decay sets in, where a call debit spread, you need the price to be above your spread and maintain that price to get your full profit. And because a credit spread makes money from time decay, you can pull out profits after holding for a couple days, even if the stock price doesn't do anything. Where for a debit spread to profit over time, the price of the stock would have to continue rising, to make the spread widen (which would make a profit.) And a debit spread usually has a slightly higher profit, but you don't profit from time decay like a credit spread. But if you're buying an ITM debit spread, the profit will be pretty similar as that of a credit spread
    1
  7.  @pikelele  That's a good point, but even though theta isn't really affecting the bought and sold contract directly and they kind of cancel each other out, the difference between the premiums still get closer as expiration gets closer. So, for a debit spread, if the price of the stock just stayed the same and you were worried it wasn't going to move the right way and you wanted to get out of the spread, you'd have to sell it at a slight loss. Where if that same situation was with a credit spread, and say after holding for a few days, you started doubting the stock because it's sitting still and you're worried it won't move correctly, you'd have a slight gain. Just know that if the stock price stays stagnant and you want to end a spread after a few days, a credit spread will have made a little money from the spread getting closer, and a debit spread will have lost a little money because the spread got closer, and you make money from the spread widening. If you want, you can DM me on Instagram, I just made an account @money.in.motion if you want to discuss more. My profile is just blank right now, but I'll upload my profile picture soon. Don't have to, but if you wanted to chat more
    1
  8.  @pikelele  But if you had no intention on selling early, theta wouldn't come into play with the debit spread. It'll only hurt you if you had a reason to get out of the spread early
    1