Here we explore the put credit spread trades I placed on the SPY durning the month of December 2014. 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.
I love this time of year: vacation, family, drinks, parties, gifts, Santa, and the rest are all great. Almost equally I love this time of year because I am reminded to take time to reflect on the past year, which gives me an opportunity to map a game plan for the coming year.
The catch is if your strategy is not well planned or implemented with discipline. Meaning that what makes the 3 factors so definitive when trading credit spreads is implementing a brilliant strategy with fidelity.
I explain what a put credit spread (bull put spread) is using an insurance analogy and real numbers, plus when to use this income-generating strategy.
A beginner’s guide to put options that uses a simple laptop analogy and real stock examples to explain how traders use puts for protection or profit.
A beginner’s guide to call options that uses a simple tractor analogy and real stock examples to explain strike price, premium, expiration, and the risks.
The difference between success, failure, and mediocrity on Wall Street is your ability to pick a smart trading or investing strategy and stick to it. Jumping into the market without first carefully defining your strategy is akin to driving a car with a blindfold on—and, likewise, you will crash at some point.
Wall Street is the domain of traders and investors. Typically we envision traders sitting in front of rows of monitors looking to make a quick buck by continually getting into and out of financial positions. In contrast, investors are the Warren Buffett types who buy and hold stocks for long periods of time.
Here we explore the put credit spread trades I placed on the SPY durning the month of November 2014. 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.
I explain why a consistent trading strategy is the only free lunch in trading, and how backtesting and discipline build the confidence to stick with it.
