Options Back to Basics: How to Place an Income Trade

Today I wanted to show you how to place a vertical spread in your trading software. This should helpful for the option newbie. One to one vertical spreads are some of the most commonly used options strategies. They have limited risk profiles while maintaining a slightly directional bias. They can be used as stand alone strategies, or combined to make more complex strategies like iron condors.

For this reason, verticals are an actively traded and liquid strategy and one that I use almost exclusively in my Options Advantage portfolio.

Starting next week, I will be producing more back to basics videos that will hopefully ease the fear around options trading. I can't think of a better place to start than learning how to place a trade.

Andy Crowder
Editor and Chief Options Strategist
Options Advantage and The Strike Price

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