Are there any obvious disadvantages in using vertical spreads VS naked calls/puts? Other than the obvious capping of potential profits, of course. I am a swing trader (4-7 days) using options for directional trades. I am in no way an expert in options' greeks, and don't really want to be one. So please no flaming if what I am asking is obvious. I was just looking at buying 2XJan195/210 call spread on AAPL instead of 1XJan195(to get the same delta). I can only see advantages to this method, with lower BE, etcâ¦Even if stock goes to $220, it is still more profitable than the naked call (naked call starts making more money above $224, and at that point you would have probably rolled). All for the same risk ($1,000 below $195). And I looked at 3-4 days after initiating the trade and it still looks better than naked. I rarely use those, what are the margin requirements compared to naked calls? I am just trying to improve my method by using spreads to limit the risk of loss of time premium/IV crush. Theta is 1/2 on the vertical what it is on the naked call, even with twice the contracts, so this is attractive as well. As most of these trades are held for 4-7 days, it seems that a calendar would not make as much sense as a vertical. As there other kind of directional calendars that would make sense? What are the implications in terms of margin? Thank you.