Options Spreads on the QQQQ - A slower way to lose money

[Airgutter87]

This is called a Bull Put Spread... I'm not a fan of them unless you're certain the stock is going to go up... I'm thinking about doing this strategy with FAS, though... For April options... sell 30 puts and buy the 28 puts... It looks promising..

[dafringe]

@82snowball You are correct. Naked put is not unlimited risk, but not $4,500 either. It is $4,500 minus the premium you received when you sold the put.

[82snowball]

Why do you say that your risk is unlimited when selling a put, Even if the stock went to zero isn't your risk limited to the strike price of $45 x 100 shares, so your risk is limited to $4500, it's not unlimited

[jetlex1]

Hi, there! Thank you for posting this and all the rest on youtube about options. Your tutorials thus far are the most comprehensible (at least for me) than others I've found on youtube. Please continue posting:o)!

[ghahandi]

@jetlex1 I'll second that. Thanks for the post. Great tutorial. A good source for highly discounted trading books and DVD's is VR trader's bookstore.