Bull Call Spreads - A Cheaper Way to Be Long Options

Learn how to utilize a Bull Call Spread in your trading with help of Drew Wilkins, a futures and options broker at Daniels Trading.

Category:

Education

Tags:

• Options on Futures
• Futures Options
• Bull Call Spread

[danielstrading]

2. Each individual trader will have their own risk tolerance level. Obviously you need to be comfortable risking what you pay for the position as you may not be able to exit if the market swiftly moves against you. Many traders will use a futures price level as a “mental stop” and if that level is reached, they look to exit the trade.

Let me know if you have any further questions!

Drew Wilkins

Futures & Options Broker

Daniels Trading

[danielstrading]

Thank you for watching!

1. A bull put spread (buying a put and selling one at a higher strike price) is a marginable position where you are looking to collect premium. It has a whole different set of risk parameters and would most likely require a higher risk tolerance. Your personal risk tolerance would be a determining factor on which one would be better for you.

[gutrp]

Good video. 2 questions.

1. Is bull call spread better than bull put spread? and if so why?

2.What is the exit strategy if the gold/stock price starts going against us?

(ie If the stock moves down- what is a better exit strategy than taking a complete loss?)