In this session of The Option Alpha Podcast I completely break-down one of the worst trade alerts we've ever seen using a debit spread. And it honestly gets to the heart of why I started this website and blog more than 8 years ago because there are still horrible companies and services out there publishing crap that doesn't help investors.
In this show we'll compare and contrast this unnamed company's call in NFLX vs a trade we look live in HPQ. At the end you'll be the judge on what you think of both - which one would you choose?
In Today's Show, You'll Learn About:
- Why we decided to record this podcast the same day we got an email suggesting a debit spread trade in NFLX.
- How this put debit spread trade suggests a trade allocation that's completely unreasonable.
- The 3 things we look for when correctly trading debit spreads.
- Why you should look for a 50/50 risk/reward when trading these directional strategies.
- Why finding a favorable break-even point which allows room to be right will increase your long-term chance of success.
- Closing Bell look at a specific HPQ put debit spread we are trying to enter.