Thank you for the article. I've been nervous this year about actively trading, but you have motivated me to get back into the game. What do you think about using put credit spreads?
I find it difficult to find credit spread ideas that fit the metrics laid out a few years ago in a YouTube video by Tony Zang of OptionsPlay.com.
I just got an email from OptionsPlay.com promoting a seminar on the risks of doing credit spreads. The seminar is free because it is a promotional tool for recruiting new subscribers. Here's the email;
"Hi Donald,
Credit spreads can generate consistent income, but one costly mistake could erase months or even years of gains. In this eye-opening webinar, I'll share the critical lessons learned from one client who lost $600,000 on a single credit spread trade.
You'll discover exactly how trades can go wrong, and proven best practices for safely managing risk.
Learn the essential steps to protect yourself while maximizing profitability with credit spreads.
In this webinar, you'll learn:
The most common mistakes traders make when selling credit spreads—and how to sidestep them
Practical, actionable risk-management strategies every trader must know
How to structure your credit spreads effectively to protect your capital"
And when I tried a few they usually disappointed me. Vertical spreads have about a 35% to 40% chance of success, according to what I've read on OptionsPlay. And I found that I spent too much time tracking and worrying about the trades.
The reason I do mostly covered calls and cash secured puts is I like to keep it simple. I can do trades that have 50% to 90% or better probabilities of expiring out of the money (OTM) and worthless. That makes trading less stressful for me. It also helps to have the liquid assets you need to buy stocks and put up the cash to secure puts sales.
Barchart.com's staff and contributing writers frequently suggest vertical spreads, including vertical spreads. Iron Condors are great commission generators for brokers but often fail and/or need commission generating adjustments before they're closed a month or so before they expire.
Thanks for the analysis- I’ll check out those names later, generally I would probably not trade WMT with the spreads you discussed. Some of your names look as though they may be quite profitable quickly if they reach and stay above the critical EMAs, let’s see. Thanks
Hi Donald , do you run a Discord community?
Thank you for the article. I've been nervous this year about actively trading, but you have motivated me to get back into the game. What do you think about using put credit spreads?
I find it difficult to find credit spread ideas that fit the metrics laid out a few years ago in a YouTube video by Tony Zang of OptionsPlay.com.
I just got an email from OptionsPlay.com promoting a seminar on the risks of doing credit spreads. The seminar is free because it is a promotional tool for recruiting new subscribers. Here's the email;
"Hi Donald,
Credit spreads can generate consistent income, but one costly mistake could erase months or even years of gains. In this eye-opening webinar, I'll share the critical lessons learned from one client who lost $600,000 on a single credit spread trade.
You'll discover exactly how trades can go wrong, and proven best practices for safely managing risk.
Learn the essential steps to protect yourself while maximizing profitability with credit spreads.
In this webinar, you'll learn:
The most common mistakes traders make when selling credit spreads—and how to sidestep them
Practical, actionable risk-management strategies every trader must know
How to structure your credit spreads effectively to protect your capital"
And when I tried a few they usually disappointed me. Vertical spreads have about a 35% to 40% chance of success, according to what I've read on OptionsPlay. And I found that I spent too much time tracking and worrying about the trades.
The reason I do mostly covered calls and cash secured puts is I like to keep it simple. I can do trades that have 50% to 90% or better probabilities of expiring out of the money (OTM) and worthless. That makes trading less stressful for me. It also helps to have the liquid assets you need to buy stocks and put up the cash to secure puts sales.
Barchart.com's staff and contributing writers frequently suggest vertical spreads, including vertical spreads. Iron Condors are great commission generators for brokers but often fail and/or need commission generating adjustments before they're closed a month or so before they expire.
Thanks for the analysis- I’ll check out those names later, generally I would probably not trade WMT with the spreads you discussed. Some of your names look as though they may be quite profitable quickly if they reach and stay above the critical EMAs, let’s see. Thanks
Thanks for the good comment.