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Options 101: Calls & Puts vs. Debit Spreads

Directional Trading Using Options

Here at Simpler Trading, we trade options primarily in a directional manner. To do so, we use strategies such as calls, puts, and debit spreads. Still, each strategy has specific reasons why you chose one over the other, plus specific advantages and disadvantages.

Most traders get into the options market using calls or puts, but during this video, I will demonstrate why it’s more beneficial for options traders to learn multi-leg strategies called debit spreads. Learning calls and puts is a necessary and normal segue into trading options, but learning debit spreads will improve your options trading skills, and give you a more favorable risk to reward outcomes along with a higher probability shot of making money on your trades – if, they are set up correctly.

Check out this video to learn more, and to determine which strategy may fit your trading style best!

 

During this session, I didn’t quite get to butterflies or credit spreads. As such, be on the lookout for the upcoming videos from my Options 101 series in which I break down both credit spreads and butterflies. I will be going over how and why these strategies are beneficial, along with the disadvantages of each and how I usually set them up. I’ll let you know when the video is up and ready for viewing!

Upcoming Free Webinar – My Kick-off to Earnings Season

In addition, I’m also going to be teaching a free webinar next week. When earnings season begins, that means there are typically directional opportunities galore.  During this webinar, I’ll go over the primary statistically-backed pre-earnings opportunities I see on the horizon!

This free webinar will be in the Free Trading Room next Wednesday, September 28th. If you don’t have access to the Free Trading Room, click on the banner below to sign up and join me there!

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