Today Brian is covering a short call spread (which is bearish) on AAPL. All of this applies on the put side, but in this episode, calls are being featured.

Specifically:

• What dynamics do you need to think about when trading short spreads?
• Look at the most at-the-money straddle to get an idea about pricing
• Example 1: November 17 expriation; 52 days out
  • Selecting strikes
  • What will this cost?
  • What is the max risk? Reward?
• Example 2: October 6 expiration; 10 days out
  • Selecting strikes
  • What will this cost?
  • What is the max risk? Reward?
• Which would you choose?
• How to close out the trade?
• How to roll the trade?

Do you have a question that you want answered on a future episode? Send them to Brian at [email protected], or to the Options Insider at [email protected].