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The Option Alpha Podcast

17: The Worst Advice We've Ever Heard About Debit Spreads

The Option Alpha Podcast

Kirk Du Plessis

Education, Options Trading, Trading, Investing, Stock Market, Business, Finance

4.81.2K Ratings

🗓️ 28 January 2015

⏱️ 20 minutes

🧾️ Download transcript

Summary

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 at live in HPQ. At the end you'll be the judge and add your...

Transcript

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0:00.0

You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to

0:06.2

make smarter trades learn how the stock market really works and generate consistent

0:10.8

monthly income. Now your host and head trader at

0:15.0

option alpha.com Kirk depluses.

0:18.0

Hey everyone this is Kirk here again from option alpha.com

0:22.0

working every single week to make this the most popular

0:25.1

podcast offered online and in iTunes because it's based on one thing and one thing only and

0:31.4

that's helping you make smarter trades.

0:33.7

So thanks so much for tuning in today and today we're going to talk about the worst advice

0:38.6

that we have literally ever heard when it comes to debit spreads.

0:42.8

And first I just even want to say sorry, because sorry that this industry is still so

0:47.9

screwed up with so many people out there who have no freaking clue what they're doing with option strading and yet they're

0:55.7

still out there promoting a bunch of this garbage and crap and trades that are just way too

1:01.6

ridiculous for people to be making and in today's show

1:04.9

we're going to go through one of them on a very big name company a company that

1:09.0

that I won't say the name of but you can bet that this company has got a lot of backing.

1:15.2

In fact, I've checked and seen that this company is backed by millions of dollars.

1:19.4

And yet, you'll see, I'll kind of break it down, just every single part of the trade alert that

1:24.6

they had sent out to their people and kind of in recommending this trade as

1:29.6

to why this is such a bad investment. So we're gonna go through that here in a little bit and we'll get started in that, but we're also

1:35.8

going to look at three things when it comes to what you should look for with regard to debit

1:40.7

spreads.

...

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