Here we explore the put credit spread trades I placed on the SPY durning the month of March 2015. This is my primary trading strategy for monthly income. By trading put credit spreads on the SPY I am typically in a trade for 23 days but no more than 45 days.
How much money should you risk with each trade? Trade size is one of the most important considerations of an active trading strategy, and maintaining optimal trade size over time involves technique. In this post we will examine 3 methods for determining trade size.
Many people think day trading is gambling: you might win for awhile, but eventually you will blow up your account. I agree—yet I day trade the SPY almost every day. Day trading is part of my overflow method and multiple strategy approach to managing my portfolio.
Here we explore the put credit spread trades I placed on the SPY durning the month of February 2015. This is my primary trading strategy for monthly income. By trading put credit spreads on the SPY I am typically in a trade for 23 days but no more than 45 days.
If you're anything like me you already have a consistent trading strategy figured out. You’re just placing the same trades repeatedly, trying to rack up as many occurrences throughout the year as you can. But the more you trade, the more commissions impact your performance—which is why eOption.com is one of my favorite brokers for trading credit spreads.
I treat my trading and investing as a business, and like any prudent business manager I am constantly seeking to trim costs while growing revenue. With options trading the biggest costs are the commissions your broker charges for every trade. So in the interest of taming those fees I built a tool to help you find the cheapest broker for particular options trading strategies: say hello to Broker Finder.When I got interested in trading credit spreads, like most I harbored some skepticism. A credit spread trade seemed to be the type that works—until rather dramatically it does not. Then I set off to figure out the correct way to trade SPY put credit spreads. The path was familiar: backtesting.
When I talk to people about my credit spread trading strategy I often hear the claim that credit spread trading works great for 5, 10, or 20 thousand dollars, but the strategy can’t be scaled up. Are these skeptics suggesting a lack of liquidity to fill bigger orders?
Here we explore the put credit spread trades I placed on the SPY durning the month of January 2015. This is my primary trading strategy for monthly income. By trading put credit spreads on the SPY I am typically in a trade for 23 days but no more than 45 days.
To study how delta affects an opening trade I did—of course—some backtesting. I took a $10,000 account and placed put credit spread trades from 2011 to current. I opened up spreads that were $2 wide, at least 4% out of the money, and no more than 45 days to expiration.
