Today's Assignment

Vertical Spreads

| Apr 24, 2024
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    Today's Assignment

    Vertical Spreads

    Apr 24, 2024

    Dr. Jim Schultz and Errol Coleman share insights after Tesla's earnings, which were beneficial for Tesla bulls. They also touched upon sports, specifically the performance of the Lakers and the Nuggets. The conversation shifted to trading strategies, highlighting a Nvidia trade that surprisingly recovered right at expiration, emphasizing the importance of being mindful of prolonged market hype in sectors like AI, marijuana, and crypto. Schultz and Coleman debated the merits of selling call versus put spreads, with a focus on volatility skew and how it impacts pricing and strategy. They also discussed the concept of 24/7 trading markets but expressed skepticism about its practicality due to potential liquidity issues during off hours. The session concluded with a live example of setting up a vertical spread trade on AMD, illustrating the application of their discussed strategies in real-time trading.

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