If you’ve been trading options for any length of time, chances are you started with simple calls and puts.
We all did.
But buying naked calls is one of the least efficient ways to trade—especially if you’re trying to turn small moves into meaningful profits.
Take a basic call option on a volatile name like Bitcoin’s IBIT ETF. If you buy a single at-the-money call for $500, and IBIT climbs 5% over the next month, you might net around $50 — about a 10% return.
Not bad, but it’s not great either, especially when you consider how much you had to risk upfront. To make serious returns with naked calls, you need huge moves… and the odds of consistently timing those perfectly are slim.
That’s why I love debit spreads.
They’re one of the “cheat codes” of active trading. Recently, I walked through a simple IBIT trade: buying the August monthly expiration $69 call and selling the $70 call for a net debit of just $0.37 — $37 per contract instead of $500.
And here’s the kicker: on just a 4.5% move higher in IBIT, that spread has the potential to return 170%. Same stock. Same time frame. Less than one-tenth the risk with 17 times the payout.
Could you make more with a simple call? Eh, sure… maybe.
But debit spreads work because they take advantage of defined risk and controlled leverage. By selling that further-out call, you offset time decay and slash your cost of entry — without giving up much profit potential if the stock moves to your target.
And unlike buying straight calls, you don’t need a monster breakout to win. Small, measured moves — just 3–5% — can double or even triple your money.
If you’re serious about trading for consistent returns, you need to master this tool. Once you understand how to use simple spreads correctly, you’ll never look at simple calls and puts the same way again.
Apex Indicator: Advanced Micro Devices (AMD)
The markets have been going sideways for the last week or so, but we could be getting very close to a breakout to the upside.
That’s why using Apex Indicatorcan help. If we do make new highs and see a green light with this powerful indicator, we can put the odds in our favor.
So, what stock is looking bullish on Apex this week?
Advanced Micro Devices (AMD). Here’s the chart:
We’ve had two blue arrows, and we’ve had some good momentum. Tech’s hot streak is being confirmed by APEX. A target for AMD would be up around the $170.03 level with a stop loss around $141.16.
Remember, we enter these trades using wrap orders, and for more training on how to place wraps… go here!
That’s all for today. I hope everyone has a great weekend — join me and Nate at 10 a.m. ET weekdays for Opening Playbook!
Graham Lindman
Graham Lindman Trading
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*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk. P.S. Why I’m Making My Best Friend Trade for the First Time
P.S. Why I’m Making My Best Friend Trade for the First Time
Josiah, our Marketing Manager here at TradingPub, walked into my office some the other day…
And I slid a $1,000 check across the desk…
“Happy birthday in advance,” I said.
He picked it up, looked at it, and grinned.
“What’s the catch?”
You see, Josiah is a smart guy, and he knows me too well… We’ve been best friends since fifth grade.
The catch is simple… he has to use it to make his first real trade.
And I’m going to show him exactly how to turn it into $1,500 by Monday morning.
Here’s what makes this interesting…
Josiah’s been working around traders for years but never pulled the trigger himself.
He says he doesn’t know enough… doesn’t have the time to learn properly.
And that’s perfect for me.
Because what I’m about to show him takes 60 minutes MAX.
All he has to do is set it up at 10 a.m. ET… The market moves a few ticks, like it always does, and he walks out potentially with his profit.
It doesn’t matter if the underlying stock goes up or down.
This setup I’ll walk Josiah through has been working 87% of the time this year.
And at 7 p.m. ET this Sunday, I’m walking him through his very first trade…
Showing him why the market only needs to move a little bit for this to work.
And how someone starting with $1,000 could be looking at an extra $500 the very next morning.
Of course, we both know no one can guarantee returns or against losses, but…
I can’t wait to see Josiah’s face when he realizes how simple this actually is.
If you’d like to see how this trade works, and how you can tag along for his first trade…
