President and Founder, Trading Trainer
Diagonal Debit Spread Master Session: Structuring To Shrink Risk And Swell Rewards
Novice investors often jump from writing covered calls and puts to substituting their underlying symbols in those transactions with options trading at parity. Many do not realize that they have constructed a Diagonal Debit Spread. More importantly, many do not realize the rules change; applying the covered option trading guidelines are not safe. In this master session, we will take a deep dive into these strategies and share solid principles to follow when planning out these trades including money management guidelines, position sizing formulas, and planning tools.