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Plan Short Vertical Spreads Using Overnight Stock Gaps
How to analyze overnight gaps to pick strikes and direction for short put/call vertical spreads, with chart examples and risk-management reminders. Educational, not investment advice.
Editorial companion
What stands out
A Schwab coaching webcast walked through using overnight price gaps to map short vertical options trades, showing how traders might pick strikes after a big open. The point was practical: a gap is useful information, not a trade signal, and it helps frame defined risk when your directional read might be wrong. For Charles Schwab Corporation the session also doubles as distribution, since teaching active options traders feeds commission and margin activity while their exchange-traded fund (ETF) business has been drawing fresh attention.