Youtor
SPY ETF Credit Spread Options Example Bull Put
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Check out my entire playlist on Trading Options here: • • How to Trade Options • Become a channel member to get access to great perks: π π π / @jakebroe • π― LET’S CONNECT π― • π· Instagram @JakeBroe π / jakebroe • π¦ Twitter @Broe_Jake π / broe_jake • π π Watch My Other Videos Here π π • β Credit Spreads Explained - Passive Income from Trading Options • • Credit Spreads Explained - Passive In... • β Debit Spreads Explained - Bull Call Spread / Bear Put Spread • • Debit Spreads Explained - Bull Call S... • β Credit Spread Examples on $TSLA and $JPM • • Credit Spread Examples on $TSLA and $JPM • β Debit Spread Examples on $NKE and $SBUX • • Debit Spread Examples on $NKE and $SBUX • • π· π· My YouTube Equipment π· π· • βΊ My Camera π https://amzn.to/2UZpFwA • βΊ My Wide-Angle Lens π https://amzn.to/2Qwf3Sq • βΊ My Wireless Microphone π https://amzn.to/2QBV9W0 • βΊ My Shotgun Microphone π https://amzn.to/36bdLTv • βΊ My Lighting π https://amzn.to/2F5Ey7V • βΊ My Light Diffusers π https://amzn.to/2tjF8fG • What flag is that? π https://amzn.to/357sptp • What is your background? π https://amzn.to/2BCHRp1 • ================ • π π Books That Changed My Life π π • π How to Win Friends Influence People π https://amzn.to/2F3ahGC • π Dumbing Us Down π https://amzn.to/2spodrZ • π Quiet - The Power of Introverts π https://amzn.to/36b2ti3 • π The Red Queen π https://amzn.to/2QzNW8W • π Rich Dad Poor Dad π https://amzn.to/3bliFyP • π Why Nations Fail π https://amzn.to/3fWZ3Em • ================ • What Is a Credit Spread Option? • In the financial world, a credit spread option (also known as a credit spread ) is an options contract that includes the purchase of one option and the sale of a second similar option with a different strike price. Effectively, by exchanging two options of the same class and expiration, this strategy transfers credit risk from one party to another. In this scenario, there is a risk that the particular credit will increase, causing the spread to widen, which then reduces the price of the credit. Spreads and prices move in opposite directions. An initial premium is paid by the buyer in exchange for potential cash flows if a given credit spread changes from its current level. • Understanding a Credit Spread Option • The buyer of a credit spread option can receive cash flows if the credit spread between two specific benchmarks widens or narrows, depending upon the way the option is written. Credit spread options come in the form of both calls and puts, allowing both long and short credit positions. • Credit spread options can be issued by holders of a specific company's debt to hedge against the risk of a negative credit event. The buyer of the credit spread option (call) assumes all or a portion of the risk of default and will pay the option seller if the spread between the company's debt and a benchmark level (such as LIBOR) grows. • Options and other derivatives based on credit spreads are vital tools for managing the risks associated with lower-rated bonds and debt. • Bear Call Spread • Bull Put Spread • ================ • π§ E-mail me at: JakeBroeYT [at] gmail [dot] com • Official business inquiries can be sent here. Personal e-mails will be discarded. • ================ • #CreditSpread #BullPutSpread #SPYStock • ================ • DISCLAIMER: • This video is for entertainment purposes only. I am not a legal or financial expert or have any authority to give legal or financial advice. While all the information in this video is believed to be accurate at the time of its recording, realize this channel and its author makes no express warranty as to the completeness or accuracy, nor can it accept responsibility for errors appearing in this video. • ADVERTISER DISCLOSURE: • Jake is a participant in the Amazon Services LLC Associates Program, an affiliate advertising program designed to provide a means for sites to earn advertising fees by advertising and linking to www.amazon.com. Additionally, other referral links are included and this channel does receive compensation for sending traffic to partner sites. Shopping through our links is an easy way to support the channel and we appreciate and are super grateful for your support!
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