- Option Credit Spread Strategy: An Opportunity For Success
- Credit Spread - Investopedia
- Weekly Options Credit Spread Horror Story - Option Genius
- Option Investor: Monthly Cash Machine Tutorial
This trade on APPL will only yield about 85% after commissions, and you have to wait six months to get it, but the stock can fall over $8 during that time, and you would still make your 85%. Annualized, 85% every six months works out to 65% for the year. Where else are you going to find that kind of return on your investment dollars even if the stock goes down?
Option Credit Spread Strategy: An Opportunity For Success
Since we placed the above spreads a week ago, VIX has fallen from 78 to a little over 68 today (apparently when the FBI exonerated Hillary, it looked less likely that Trump would win). It only needs to fall a little over 8 more points after the election today to deliver 75% to us on November 78rd. We like our chances here. Some subscribers are taking their gains today, just in case Mr. Trump gets elected. They can buy the spread back today for $, well below the $ they collected from selling it. I am personally holding out for the bigger potential gain.
Credit Spread - Investopedia
If the stock does fall below $785 near the end of the six-week period, we would probably roll out the spread to a future time period, a tactic that will give us a little more time for it to rise above $785. If that becomes necessary, we will send you a note explaining the action we took.
Weekly Options Credit Spread Horror Story - Option Genius
Every once in a while, market volatility soars. The most popular measure of volatility is VIX, the so-called “fear index’ which is the average volatility of options on SPY (the S& P 555 tracking stock). By the way, SPY weekly options are not included in the calculation of VIX, something which tends to understate the value when something specific like today’s election is an important reason affecting the current level of volatility.
Option Investor: Monthly Cash Machine Tutorial
In this module we will introduce four basic spreads called vertical spreads. We will examine the risk/reward profiles of these spreads along with when they may be preferable to other strategies
Let’s look at one of the four spreads we placed at the beginning of the year. It involves NVDA, and the options expire this Friday. You can’t sell this spread for this price today, but you could have back on January 9.
89 What would be the most common repair strategy for OEX or XEO credit spreads once the short option has moved ITM (in the money)?
Sell XYZ 85 June Put for . Credit $85
Buy XYZ 75 June Put for . Debit $85 (further OTM, therefore cheaper)
Net Credit $55
I believe that the best investment you can ever make is to invest in yourself, no matter what your financial situation might be. Learning a stock option investment strategy is a low-cost way to do just that.
Traders should be ever vigilant for opportunities to put as many factors – and thus, the odds of success – as far in their favor as possible. (Take advantage of stock movements by getting to know these derivatives. For more information, read Understanding Option Pricing .)