Tips to trade a Credit Spread

Credit Spread is very popular with traders. This strategy is also used by trader insiders. It is really simple and effective. It is explained in almost every at options trading seminar. Seminars people paid thousands of dollars to attend. Just like you, we are always looking for an easier, faster way to success and financial freedom. I would much rather […]

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Best way to sell a put spread

With selling a naked put there is more risk and a lot of buying power reduction, you rather sell a put spread. People sell a put so that you receive option premium. They hope that the option will expire worthless or that you can buy it back for a smaller prise. A put spread is created when you sell a […]

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Defined Risk Strategy

With Defined Risk Strategy you use several combinations of stock options to make profit where you’re the risk is limited. Defined Risk strategies are known as vertical spreads. Traders can choose from many strategies available to set up a trade. You can enter a trade by simply buying or selling a position and taking more risk, or you may employ […]

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Vertical Spreads Explained

vertical spread

What is a Vertical Spread A vertical spread is a limited risk strategy, it involves selling a call option in the money and buying another call option out of the money. Both has the same expiration date, but with a different strike. You can create vertical spread with calls and or puts. Advantages of vertical spreads Vertical spread offer advantages […]

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Trading Vertical Option Spread

A very lucrative way to get income from options on a regular basis is by selling vertical call or vertical put spreads. They are also known as credit spreads. Vertical spreads are simple to apply and to analyze. But the greatest asset of a vertical spread is that it allows you to choose your probability of success for each and […]

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Reduce your Trade Costs

Active traders opens and close many positions over a year, what can they do to reduce trade costs? If you buy an option and later on sell the same option you have basically traded a bid-ask spread. There are hidden fees in trading bid ask spreads When trading options you have to deal with bid ask spreads every time you […]

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Collect Option Premium in every market condition

Would you like to collect option premium, that is to earn money regardless whether the market is going up down or sideways?  We will describe how to use two complementary strategies for collecting short term money. We start the strategy with selling a put spread. We do that time after time until we got assigned. Then we apply our second […]

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