Posts Tagged ‘credit spreads’

Credit Spread and the Iron Condor

The Credit Spread and The Iron Condor The use of “out-of-the-money” credit spreads that take advantage of a trending market has become a popular, "high probablity" trading method. The idea is to place a bullish option spread behind an area of technical support when the market is trending higher or a bearish option spread above

May 13th, 2012
by Christopher Smith

Credit Spread Trading System Development

Developing A Credit Spread Trading System Using basic technical analysis principles, a simple but effective system can be easily developed for trading short-term credit spreads. These trades rely upon theta decay to draw value out of the option until it expires worthless, thereby creating a profit for the trade. Because credit spread traders rely upon

May 8th, 2012
by Christopher Smith

Bull Put and Bear Call Credit Spread

Bull Put and Bear Call Credit Spreads Spreading Options Allow You a Trader to Control Risk, While Assuming an Advantageous Position in the Market. The Bull Put Credit Spread As the name implies, the Bull Put Spread carries a bullish bias and is constructed with put options. Let us assume that XYZ Company is currently

May 8th, 2012
by Christopher Smith
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