Diagonal Call Debit Spreads
$DocuSign(DOCU.US$
None of my Posts are me trying to Show Off!! Just wanted to get that point across!!
My Posts are only trying to teach the “Newer” Option traders different techniques to Profit!!
Most New Option Traders will LOSE ALL OF THEIR MONEY! It’s a Fact!!
The reason is because Most will not take the time to Study Options for a few months before they place a Real Options trade!
And they DEFINITELY DO NOT practice what they learn by “Paper trading” on Brokers that have Options Paper trades!
Many New traders see the RIDICULOUSLY HUGE PROFIT that many are making and they want the same Profits! So instead of Studying Options, they Jump right in without a Clue how Options work!!
ALWAYS STUDY and Paper Trade for a few months before you ever place a Real trade!!
It takes a Long time to get familiar with how Options work and like I stated…. Most will Lose All of their money!!
I showed a “Calendar” Call Debit Spread trade I did earlier but wanted to show a “Diagonal” Debit Spread…….
I bought a few of the 12/21/22 $200 Calls and I sold a few of the 12/07/22 $210 Calls!
I paid $71 for each Spread!
As you can see …. both of my Legs are dropping in Value! But THETA is hurting my Legs that I sold because they are further OTM and they also Exp a few weeks earlier than the Call I bought (which are closer ATM and Exp 2 weeks later)!
Even though both Legs are dropping, I am in Profit (not by much but Profit is Profit)!
I usually sell some once I’m in Profit! I don’t hold onto my Options very Long! I’ve learned the Hard way MILTIPLE times by Not taking Profit when I should have!
None of my Posts are me trying to Show Off!! Just wanted to get that point across!!
My Posts are only trying to teach the “Newer” Option traders different techniques to Profit!!
Most New Option Traders will LOSE ALL OF THEIR MONEY! It’s a Fact!!
The reason is because Most will not take the time to Study Options for a few months before they place a Real Options trade!
And they DEFINITELY DO NOT practice what they learn by “Paper trading” on Brokers that have Options Paper trades!
Many New traders see the RIDICULOUSLY HUGE PROFIT that many are making and they want the same Profits! So instead of Studying Options, they Jump right in without a Clue how Options work!!
ALWAYS STUDY and Paper Trade for a few months before you ever place a Real trade!!
It takes a Long time to get familiar with how Options work and like I stated…. Most will Lose All of their money!!
I showed a “Calendar” Call Debit Spread trade I did earlier but wanted to show a “Diagonal” Debit Spread…….
I bought a few of the 12/21/22 $200 Calls and I sold a few of the 12/07/22 $210 Calls!
I paid $71 for each Spread!
As you can see …. both of my Legs are dropping in Value! But THETA is hurting my Legs that I sold because they are further OTM and they also Exp a few weeks earlier than the Call I bought (which are closer ATM and Exp 2 weeks later)!
Even though both Legs are dropping, I am in Profit (not by much but Profit is Profit)!
I usually sell some once I’m in Profit! I don’t hold onto my Options very Long! I’ve learned the Hard way MILTIPLE times by Not taking Profit when I should have!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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- Market Investor since 1992.
- Options Trader (8) Years
- Crypto Trader/Hodler (2014 - Present)
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Cat army : I bought call of DocuSign and now in big loss