Free Option Trade
Free option trade: Here’s a trade I put on yesterday in my personal account. It is a straightforward put credit spread on CME. Great for papertrading.
It is my belief that the markets will rally into the end of the month. Even without the rally, CME should do fine. It has been performing nicely the last few months and it confirms to the requirements of my new credit spread trading system that I am testing.
Credit spread trading system
Sell to Open July 280 Puts
Buy to Open July 270 Puts
Right now, you can get .85 cents credit for the trade which is $85 per spread. The max loss is $915 and so the Profit Potential is 9.3%. There are 30 days left in the trade until expiration.
The idea is to let it go to expiration and let it expire. If CME drops I would take this trade off when I was down about 15%.
Expand your investments through option selling
If you currently limit your asset mix to traditional investments, then you’re missing out on what could be a powerful tool and opportunity for growing and protecting your net worth.
The rewards of options investing can be far greater than the potential gains of buying or selling stock. However, the risks are also greater. For those of us who love the extra challenge of option investing, it is worth every minute of time you spend.
So make the first step and dedicate some time to learn how to use options the smart way. Got something to share? Please feel free to leave your comments below.