Max Profit of Vertical Spread

NexusFi · 2014-01-17T21:11:22-05:00

I agree it was a good trade - $22 profit for $58 of risk is a nice return for a few days work. Still it would be nice to be able to get more when the instrument makes a quick 7 point move (assuming that the trade was entered around $159.) But in exchange for limited risk, we have to accept limited return as well. It is interesting to note that an increase in volatility actually works against you once the trade is in the money. Yeah. I closed it out for 0.79 on Friday. I picked up the book everyone was …

Discussion in Options

Updated January 18, 2014

Max Profit of Vertical Spread

January 17th, 2014, 09:11 PM

#21 (permalink)

Big Mike

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