High Probability Option Trading – Covered Calls and Credit Spreads

Passarelli is a gifted teacher who can explain options in a clear and logical way.-To-understand, and Realistic. This video will show viewers how to use option spreads in the same way professional traders do.

High Probability Option Trading – Covered Calls and Credit Spreads

Run time: 58 minutes. Credit spreads provide a low-You can profit without taking too much risk by selling options. Trading strategies can be a failure if traders don’t fully understand the details. Options expert and Dan Passarelli, a former floor trader, explains the benefits of credit spreads and the dynamics of spread pricing. and This is his method for choosing low risk credit spreads that offer high rewards. The three main factors that determine the value of credit spreads are time decay and direction of the stock. and volatility. Credit spreads are naturally profitable from time decay. However, they lose value when the market moves in a negative direction or volatility increases. You can reduce risk factors by choosing the correct stock and expiration month. and The right strike prices. These are the challenges Passarelli has faced as an option floor trader. He shares his knowledge and insights. He explains why it’s vitally important to choose a stock that has just bounced off a support/resistance point, has low implied volatility, has strike prices at or just beyond key support/resistance areas, and In the next two weeks or two months, they will expire. Passarelli gives a variety of examples that show how he uses this method on actual markets. What viewers will learn:

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– Understand why option credit spreads are a great strategy for generating income, without taking undue risk.

– How to put the factors that drive options prices to work for you, without having to understand complex formulas or mathematics.

– How to select the right stocks, the right strike prices, and To maximize credit spreads’ benefits, choose the right expirations

– How to manage every step of an options spread position and Profits at the right time

Passarelli is a gifted teacher who can explain options in a clear and logical way.-To-understand, and Realistic. This video will show viewers how to use option spreads in the same way professional traders do.