Posts Tagged ‘credit spreads’
(Options Selling) Glimpse trade: QQQ
11/14/2013 This trade is fairly simple. It is called a credit spread and it is being done on the Nasdaq 100 ETF. Symbol: QQQ Sell to Open Dec 80 Puts (.38) Buy to Open Dec 79 Puts (.28) for a credit of .10 If you do one contract of this trade the maximum you can…Read More
Showing A Loss Before Expiration
Credit Spread is Showing a Loss “The credit spread is showing a loss”. Why is this trade showing a loss? That is the question a member asked me today. His question has to do with why a credit spread is showing a loss when the stock is still above the short strike. Valid question, and…Read More
How Do You Scan For Option Trades?
Hello OptionGenius. I have been trading credit spreads for about 3 months now with some success. I read the nine part course and realize that my past training didn’t discuss much about selection of trades and adjustment of trades. When I was looking around the website, I saw a brief reference on how you scan…Read More
Calculating Profit Potential and Max Loss on an Options Trade.
The first thing to determine is whether the trade is a debit trade, where you pay money for the trade, or a credit trade, where you get money. Iron condors and credit spreads are two examples of credit spreads. Butterflies and Calendar Spreads are debit spreads. OptionsTrade Debit Spread With a debit spread, the max…Read More