My friend, head coach, and trading peer, Jason and I are back, this time to wrap up our serial on the three dimensions of vertical spreads.  This is our last episode.

In this episode we talk about what considering implied volatility graphs ahead of a trade can do to a trade’s end-profit. Using vertical skew we can further optimize our choice of vertical credit spread strike prices and expiration dates. In summary, the “half condor” profits based on a directional AND probability bias. When you address price and volatility risk on the front end, as described in examples in our serial, the doors open up to optimized returns.

To your good trading.

A.J. Brown