Uploaded October 2025 | Updated September 2026, 2 weeks ago
ððððŸð ððððððð ðŸððððð: Our first finance course is ððð ðððð! Aspiring quants should use this link to enroll: socratica.com/courses/stock-options
ððððŒððŸð ðŸðððððð from Socratica
socratica.com/pages/finance-courses
ð ¿ïž ðŸð€ð£ð£ððð© ð¬ðð©ð ðªðš ð€ð£ ððŒððððð
patreon.com/socratica
ð¬ððð ðŸððððð ðŸððððð ðððð - Quantitative Finance
ðððððð ðð ð¬ððð£ ð©ðð ðð€ðªð§ðšð ð¡ððªð£ððððš:
ð snu.socratica.com/quantitative-finance
Most option trades involve just one contract. A spread involves two or more options working together. Here we explore what spreads are, where their names came from, and why traders use them to shape risk and reward.
Option spreads are the precision tools of quantitative trading. Instead of betting on a single direction, spreads let you target the relationship between two option prices.
Weâll look at vertical, horizontal, and diagonal spreads, and how each one isolates a different kind of risk: price, time, or both. Youâll also see why payoff diagrams only tell part of the story, what âassignmentâ actually means, and why even complex structures like butterflies and iron condors are still called spreads.
âïž ðð€ðª ððð£ ððªð¢ð¥ ð©ð€ ðšððð©ðð€ð£ðš ð€ð ð©ðð ð«ðððð€ ððð§ð:
0:00 Intro & Why theyâre called âspreadsâ
1:28 Thinking in differences
2:00 Payoff diagrams vs. reality
2:45 Defined risk and reward
3:35 Vertical, horizontal, and diagonal spreads
5:10 Managing assignment risk
6:05 Complex strategies built from spreads
6:50 Outro / Patreon CTA
ðððŒðððððŒðððð ððððŒððŸð is where math meets the market.
It is a supremely rational, logical approach to finance. It involves analyzing large datasets, generating mathematical models to make predictions about how markets will behave. Then, in application of these models, traders buy and sell securities based on those predictions.
In this course, you will learn the key tools used by "quants."
ðððð ðð ððð: snu.socratica.com/quantitative-finance
ðð ðððŸðððððð¿
Paul Wilmott Introduces Quantitative Finance
ð amzn.to/3Qe8zab
The Big Short (movie)
ð¬ amzn.to/4jbl5DJ
ðŒðœððð our Instructor:
Michael Harrison earned his BS in Math from Caltech, and did his graduate work in Math at UC Berkeley and University of Washington, specializing in Number Theory. A self-taught programmer, Michael taught both Math and Computer Programming at the college level. He applied this knowledge as a financial analyst (quant) and as a programmer at Google.
ðððœððŸðððœð to Socratica:
ðŠ bit.ly/SocraticaSubscribe
ððððððð Socratica on Patreon:
ð ¿ïž patreon.com/socratica
We'd like to send a special thank you to our VIP Patrons at Patreon! Our patrons are the ones who make it possible for us to take the time to do all the behind-the-scenes work to bring you these videos.
Tracy Karin Prell
Umar Khan
Thomas Myers
Michael Shebanow
Mark Rushing
Marcos Silveira
M Andrews
KW
Kevin B
John Krawiec
John-Michael Lewis
Jim Woodworth
Jeremy Shimanek
Eric Eccleston
and Christopher Kemsley
are our VIP Patrons!
ð ððð this channel to get access to small Youtube perks like an owl emoji when you leave comments, fancy!
youtube.com/channel/UCW6TXMZ5Pq6yL6_k5NZ2e0Q/join
Music Licensed from SoundStripe:Infiltration by Wicked Cinema
code: EZW3SHWKAAEWKVMT
#Quants #Spreads #OptionsTrading
ððððŸð ððððððð ðŸððððð: Our first finance course is ððð ðððð! Aspiring quants should use this link to enroll: socratica.com/courses/stock-options
ððððŒððŸð ðŸðððððð from Socratica
socratica.com/pages/finance-courses
ð ¿ïž ðŸð€ð£ð£ððð© ð¬ðð©ð ðªðš ð€ð£ ððŒððððð
patreon.com/socratica
ð¬ððð ðŸððððð ðŸððððð ðððð - Quantitative Finance
ðððððð ðð ð¬ððð£ ð©ðð ðð€ðªð§ðšð ð¡ððªð£ððððš:
ð snu.socratica.com/quantitative-finance
Most option trades involve just one contract. A spread involves two or more options working together. Here we explore what spreads are, where their names came from, and why traders use them to shape risk and reward.
Option spreads are the precision tools of quantitative trading. Instead of betting on a single direction, spreads let you target the relationship between two option prices.
Weâll look at vertical, horizontal, and diagonal spreads, and how each one isolates a different kind of risk: price, time, or both. Youâll also see why payoff diagrams only tell part of the story, what âassignmentâ actually means, and why even complex structures like butterflies and iron condors are still called spreads.
âïž ðð€ðª ððð£ ððªð¢ð¥ ð©ð€ ðšððð©ðð€ð£ðš ð€ð ð©ðð ð«ðððð€ ððð§ð:
0:00 Intro & Why theyâre called âspreadsâ
1:28 Thinking in differences
2:00 Payoff diagrams vs. reality
2:45 Defined risk and reward
3:35 Vertical, horizontal, and diagonal spreads
5:10 Managing assignment risk
6:05 Complex strategies built from spreads
6:50 Outro / Patreon CTA
ðððŒðððððŒðððð ððððŒððŸð is where math meets the market.
It is a supremely rational, logical approach to finance. It involves analyzing large datasets, generating mathematical models to make predictions about how markets will behave. Then, in application of these models, traders buy and sell securities based on those predictions.
In this course, you will learn the key tools used by "quants."
ðððð ðð ððð: snu.socratica.com/quantitative-finance
ðð ðððŸðððððð¿
Paul Wilmott Introduces Quantitative Finance
ð amzn.to/3Qe8zab
The Big Short (movie)
ð¬ amzn.to/4jbl5DJ
ðŒðœððð our Instructor:
Michael Harrison earned his BS in Math from Caltech, and did his graduate work in Math at UC Berkeley and University of Washington, specializing in Number Theory. A self-taught programmer, Michael taught both Math and Computer Programming at the college level. He applied this knowledge as a financial analyst (quant) and as a programmer at Google.
ðððœððŸðððœð to Socratica:
ðŠ bit.ly/SocraticaSubscribe
ððððððð Socratica on Patreon:
ð ¿ïž patreon.com/socratica
We'd like to send a special thank you to our VIP Patrons at Patreon! Our patrons are the ones who make it possible for us to take the time to do all the behind-the-scenes work to bring you these videos.
Tracy Karin Prell
Umar Khan
Thomas Myers
Michael Shebanow
Mark Rushing
Marcos Silveira
M Andrews
KW
Kevin B
John Krawiec
John-Michael Lewis
Jim Woodworth
Jeremy Shimanek
Eric Eccleston
and Christopher Kemsley
are our VIP Patrons!
ð ððð this channel to get access to small Youtube perks like an owl emoji when you leave comments, fancy!
youtube.com/channel/UCW6TXMZ5Pq6yL6_k5NZ2e0Q/join
Music Licensed from SoundStripe:Infiltration by Wicked Cinema
code: EZW3SHWKAAEWKVMT
#Quants #Spreads #OptionsTrading
