Pro Trader Strategies · The Breakout Spreads Starter Class
A short video class that shows why a good breakout chart does not make a good option trade, and what a call debit spread is, in plain words.
Get The Starter Class: $29One payment of $29. Instant access. Educational content only.
A stock breaks out to a new high on strong volume. You buy a call. The stock keeps rising, and you still lose money, or you make far less than you expected.
That happens because a call can lose to time, to the size of the move, and to implied volatility, all at once. The chart was right. The option was the wrong tool, or it was the right tool used without the math.
A call debit spread is one alternative. It costs less than a single call, it caps your loss at the amount you pay, and it trades away some upside to do it. It is not magic, and the Playbook is honest about the trade-offs.
A defined-risk spread can still lose its entire debit, and it can lose it quickly. Option quotes in the examples are snapshots shown as illustrations, and real prices differ. Nothing here predicts what any stock will do next.
Is this a signal service?
No. The Playbook is education. It does not tell you what to buy or sell, and it does not pick strikes for you.
Do I need an options account?
To place a spread you need an options account approved for spreads. Levels vary by broker. You can learn and paper-trade the process first.
How much experience do I need?
You should know what a call option and a strike price are. Everything else is explained in plain words.
Does it promise results?
No. Options involve substantial risk and are not suitable for every investor. Examples are from the past and past results do not predict future results.
What if it is not for me?
We stand behind our work. We offer a 30-day exchange for any other product of equal or lesser value. Details: https://protraderstrategies.com/about-us/return-policy/
Everything here is education. It is not investment advice, it is not a signal service, and nobody can promise you a result. You are responsible for your own decisions.
Risk summary. Educational content only. Not investment advice and not a recommendation to buy or sell any security or option. Trading involves substantial risk of loss. All examples are from the past or are labelled hypothetical illustrations; past results do not predict future results. Hypothetical results have inherent limitations (see the full disclaimer below).
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Hypothetical or simulated performance results have certain inherent limitations. Unlike an actual performance record, simulated results do not represent actual trading and may not be impacted by brokerage and other slippage fees. Also, since the trades have not actually been executed, the results may have under- or over-compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
HYPOTHETICAL OR SIMULATED PERFORMANCE RESULTS HAVE CERTAIN LIMITATIONS. UNLIKE AN ACTUAL PERFORMANCE RECORD, SIMULATED RESULTS DO NOT REPRESENT ACTUAL TRADING. ALSO, SINCE THE TRADES HAVE NOT BEEN EXECUTED, THE RESULTS MAY HAVE UNDER-OR-OVER COMPENSATED FOR THE IMPACT, IF ANY, OF CERTAIN MARKET FACTORS, SUCH AS LACK OF LIQUIDITY. SIMULATED TRADING PROGRAMS IN GENERAL ARE ALSO SUBJECT TO THE FACT THAT THEY ARE DESIGNED WITH THE BENEFIT OF HINDSIGHT. NO REPRESENTATION IS BEING MADE THAT ANY ACCOUNT WILL OR IS LIKELY TO ACHIEVE PROFIT OR LOSSES SIMILAR TO THOSE SHOWN.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. In fact, there are frequently sharp differences between hypothetical performance results and the actual results subsequently achieved by any particular trading program. Hypothetical trading does not involve financial risk, and no hypothetical trading record can completely account for the impact of financial risk in actual trading. All information on this website or any product purchased from this website is for educational purposes only and is not intended to provide financial advice. Any statement about profits or income, expressed or implied, does not represent a guarantee. Your actual trading may result in losses as no trading system is guaranteed. You accept full responsibilities for your actions, trades, profit or loss, and agree to hold protraderstrategies.com, the site legal owners and any authorized distributors of this information harmless in any and all ways. The use of our products constitutes acceptance of our user agreement. No Representation is being made that Steven Primo, Global Chart Analysis, www.protraderstrategies.com or any of its affiliates confers any degrees or represents themselves as institutions of higher learning.
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