The Ryan & Beef Show

Monday – Friday | 11:30a – 12:00p CT

Why We Like To Sell OTM Spreads

Ryan & Beef

Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

When we're selling call spreads or selling put spreads, strike selection is one of the most difficult aspects of our trade setup.

Frank joins Ryan on today's show to explain the differences between selling in the money spreads (ITM) and selling out of the money spreads (OTM), and why we typically look to sell spreads that are out of the money.

The guys explain how trade setup is a subjective balance between risk, reward, and probabilities, but to put the probabilities in our favor, we typically look to sell spreads using strikes that are out of the money.


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