Options
What Happens When You Buy One Option and Sell Another?
Date: 2026-11-08 13:45:20
So far, we have looked at buying one option and selling one option.
A spread combines them.
For example, you could:
• Sell one put
• Buy another put at a different strike
• Use the same expiration date
You receive premium for the option you sell.
You pay premium for the option you buy.
Together, those two contracts create a different risk and reward profile than either option by itself.
That is the basic idea behind an options spread.
Next: We will put two actual strike prices on screen so you can see exactly how the pieces fit together.
Educational content only. Options involve risk.
#OptionsForBeginners #OptionsSpreads #PutSpread #OptionsTrading #TradingEducation #OptionAlpha
Want to get updates when we publish new videos? Click here to Subscribe: https://www.youtube.com/OptionAlpha?sub_confirmation=1
This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
