Mike Butler Tells You the Exact Moment You Have to Roll a Credit Spread

Options trading strategy: Mike Butler explains why option spreads barely move. Vertical spreads have almost no Greek exposure because you sell one option and buy the inverse right next to it. But a 5-point spread in DraftKings behaves nothing like SPX because width relative to stock price is everything. Plus the trick to cut your risk in half for 10 cents, and why you must roll a credit spread before it goes in the money or you pay a debit. 📊 tastylive: https://www.tastylive.com/ 📰 Get Tom's pre-market analysis every morning: https://www.tastylive.com/newsletters 📘 FREE Options Strategy Guide: https://tinyurl.com/bp9ms763 📱 Follow tastylive on X: https://x.com/tastyliveshow Chapters 00:00 Options in Action: spreads on the platform 00:27 Vertical spreads have very little Greek exposure 00:39 Calendar and diagonal spreads for dynamic exposure 01:15 SPX 10 point spread: slow moving, Greeks offset 02:15 DraftKings: same width, totally different behavior 02:58 Width relative to stock price is everything 03:35 The bid ask trick: cut risk in half for pennies 04:24 When your short premium is too thin, use a ZEBRA 04:54 Gamma risk and rolling at 21 days 05:12 How to defend a spread before it goes in the money 05:56 Roll before it goes in the money or pay a debit 06:37 Narrow spreads are binary, wide spreads have Greeks #tastylive #optionspreads #verticalspread #diagonalspread #creditspread #mikebutler #optionsinaction #optionstrading #gammarisk #tastytrade tastylive is a real financial network, producing hours of live programming every day. Follow along as our experts navigate the markets, provide actionable trading insights, and teach you how to trade. With over 120 original segments, and over 25 personalities, we'll help you take your trading to the next level, whether you are new to trading or a seasoned veteran. tastylive content is created, produced, and provided solely by tastylive, Inc. ("tastylive") and is for informational and educational purposes only. It is not, nor is it intended to be, trading or investment advice or a recommendation that any security, futures contract, digital asset, other product, transaction, or investment strategy is suitable for any person. Trading securities, futures products, and digital assets involve risk and may result in a loss greater than the original amount invested. Investment information provided may not be appropriate for all investors and is provided without respect to individual investor financial sophistication, financial situation, investing time horizon or risk tolerance. Options, futures, and futures options are not suitable for all investors. Prior to trading securities, options, futures, or futures options, please read all applicable risk disclosures, including, but not limited to, the Characteristics and Risks of Standardized Options Disclosure and the Futures and Exchange Traded Options Risk Disclosure Statement found at https://tastytrade.com/disclosures/. Past performance is not indicative of future results. Performance is not presented net of all commissions, fees, and expenses. Multi-leg option strategies incur higher transaction costs than single leg trades as they involve multiple commission charges. Examples provided are for illustrative, informational, and educational purposes only and are not intended to be reflective of results you can expect to achieve. Supporting documentation for any claims, including claims made on behalf of options programs), comparisons, statistics, or other technical data, if applicable, will be supplied upon request. tastylive, through its content, financial programming or otherwise, does not provide investment or financial advice or make investment recommendations. tastylive is not a licensed financial adviser, registered investment adviser, or a registered broker-dealer.