In this episode, we are looking beyond the Options Playbook and are selling a put credit spread to pay for a long call. You can find more on p. 76 of The Options Playbook, which is always available on OptionsPlaybook.com, in on the Amazon Kindle edition.

Specifically:

• Looking at Intuitive Surgical, Inc. (ISRG), which has been on a tear lately
• Earnings pushed the stock even higher
• Expensive underlying = expensive options
• Taking a long view using LEAPS
• Selecting strikes for the put spread
• Buying the at-the-money call
• How does the trade work?
• What is the cost?
• What is the risk?
• How to close it out?
• Alternatives to the trade as described

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].