 Hey traders, this is T Bradley 90 from the my investing club chat I'm one of the top mentors and moderators in chat as a special gift to our viewers on YouTube We have created a free two-hour course to help teach you how to start a consistently profitable trading business and identify high-paying setups in just 30 days There will be limited seating every week so register for the course and reserve your spot now Using the link in the description as a special bonus for everyone that watches the entire video We will give you the link to a free 10-hour additional mini course that has never been released to the public Register now before all slots completely fill up Hello, I might see this is John aka wildlife back for another episode of options basic We're going to continue on talking about a different positions that you can choose when putting option positions on in the previous episode we talked about kind of the very first or basic ones which was selling the cash secured puts or Selling covered calls against your long stock positions as you already hold the next ones that will kind of get into in this case is kind of vertical spreads and The first few will talk about our bullish positions and the great thing about options is you can create Whether you're bullish or bearish You know a vertical spread whether it's calls or puts truly just buy your strike selection So in this case, we're going to talk about the bull call debit spread It's always a debit and to initiate position because you're you're buying a long call You know, that's that's you know Less than the short one that you're selling. So I have my tasty works account over to the left. You can see it I talked about in the previous episodes. It's a it's a really good visual tool that I use to kind of help Set up trades kind of see where the Delta's at what happens if I move this around you can drag And you know, you can see down here on the bottom says $5.60 for the debit. So we're going to talk about Setting up, you know, we're going to give an example of the different positions that we're going to set up here So in this case, you know, we're going to long one 60 call and short one 65 So it's always the long is going to be the the lower of the two So I have the app a Apple ticker pulled up right here. It closed at 261 78 so in this case since we're looking at calls, we're going to buy the 260 which is in the money because it's below, you know, the 261 71 So in this case now the at the money in the money line Depending on whether it's a call or put right is is going to be this quadrant is in the money and calls this quadrant over Here's in the money and puts because of the the price of the current stock right now So we're going to buy the 260 we're going to sell the 265 That's this example right here in real life and then the current pricing is $2 and 50 cents So what you can do is you can move your call around so instead of, you know Buying a lower one and selling a higher one you could flip it, right? So this one even though I said I'd go over the bull call debit spread You can sell the 275 and then buy the 280 and what this is doing what this position is is saying that I don't believe that the stock is going to go above the 275 strike So in the 20 next 26 days and by by doing that you're this is a credit this time So this is going to be a bear call credit spread where you're get collecting a credit up front But you're at risk. It's kind of the same way you're at risk for the difference of the strike Minus the credit so this will obviously you're taking on more risk Because it's quite a bit of a difference. So in this case your risk would be the 280 minus 275, right? That's the five Minus because you took in a credit of 56 cents if you sold this minus point five six So you're taking on four hundred and forty dollars of risk but the odds of This of this stock getting all the way to 275 or is is low because that's just you know The the nature of this it's you know, it's quite a few points. So in this case, it's let's see 275 Minus like we'll just around it to 262. So it's like 13 points above where the current price is So that's that's why this is a higher odd But you're you're you're taking on more risk because of the odds are in your favorites There's an 83 83% chance that this strike if you sell it or set it up this way will stay out of the money That's this OTM percentage. And so that's why a lot of times, you know You don't have to be right and say I think it's gonna rise or fall you can kind of put it in a range You just say oh, well, I believe it's not gonna go above 275 So you can do it this way as well instead of doing a you know a bullish one you can do a bearish one and collect a credit and Stay on the call side. You can do with the puts. That's why I was talking about you can you can set up this trade whether it's calls or puts anyway by whether you're bearish or bullish based on where you sell your strike and buy your You know your protection on on that side, so I'll go over it more down the road. This is more kind of the first step of of that and Yeah, that's the that's the basics of that one and And so the other the other one so we talked about the call so the other part That is a bullish would be a bull put spread. These are kind of a pretty common one that people like to do and Same thing. So they are going to sell, you know, you're gonna sell one Hey traders, this is Tosh. I go by T Bradley 90 in the my investing club chat Just wanted to reach out and say if you have any questions about M. I see joining M. I see maybe you're a member already You have three ways to contact myself personally and through M. I see you can hit our social media You can hit me through pms in chat or you can contact us through my email at Tosh at my Investing club comm. That's Tosh at my investing club comm I will get back to you in a timely manner and I'm saying this because I'm here to help And I don't want anybody to be afraid to reach out and ask any question that they have we are here for you guys All right. See you guys