Credit Spread

If you’re new to our site, make sure to watch our FREE TRADING VIDEO. Thanks for visiting!

Of all of the different option strategies out there, the credit spread technique is probably one of the most well-liked, the most talked about, one of the most used (or abused depending on how you look at it) [...]

When the market tanked on Thurs – May 6, 2010 – the VIX spiked over 40 and the vols soared. Then the market bounced back up pretty quickly, and around 20 minutes before the close, talk started coming out on the networks that the huge drop was due to some ‘fat finger’ error by some [...]

Today when the market went nuts (dow dropping 1000 points) our TOS platform started acting haywire. Risk graphs were creating crazy formations for awhile there, then our net liquidating value suddenly said we had over 20 million dollars available.
Tried as I might, I was never able to  liquidate any of that before it corrected itself [...]

New article from the people at ‘O’ on the ‘Appreciating Collar‘. If you haven’t read the book from R-Walk on this trade, could be worth a look. There is also a good video on a similar ‘married put’ strategy found in our option course as well as some unique and new ‘rules’ for when to [...]

There are numerous option spread strategies non directional option traders can use to profit from the market without having to ‘know’ or be necessarily ‘correct’ about market and/or stock direction.
These include the iron condor, the butterfly spread, the diagonal and the double diagonal, the calendar spread – the double calendar spread – and, the credit [...]

The credit spread option strategy can be played with either call options or put options. A credit spread / vertical spread placed with calls is called a bear call spread – while those that are placed with puts are called bull put credit spreads.
An example of a bull put credit spread would resemble the following…
Sell [...]

The credit spread option strategy can be used with either call options or put options.
For the most part this option spread is used when the trader placing it feels that the stock being used will not breach the short strike chosen for the spread which does make this trade somewhat of a directional play.
For example, [...]

Discuss this and other stock market related topics at : www.internationalstockforums.com Credit Spreads, that is Bull Put Spreads and Bear Call Spreads are some of the most mythologised strategies in all of Option Land. This is part one of a video, exploding some of those myths and looking at the real truth of this strategy, [...]

Another name for the credit spread is the option vertical spread.
Actually, the term vertical spread is used for both option credit spreads and option debit spread.
A credit spread is an option spread that brings a ‘credit’ into the traders account. The trader sells either a call or a put that resides closer to the money [...]

When discussing option spread strategies, the opposite of the option credit spread is the option debit spread.
While credit spread option techniques bring premiums in the form of credits INTO a traders account, debit spreads do just the opposite as the title of this method suggests – it pulls a debit out of the account. Also [...]