Volatility is back! Seems the day of the market just creeping up every day are over. In February 2018 the market tanked creating tons of new opportunities for entering Put Credit Spread trades. Sadly, we took some losses but in this post I explain that is not a bad thing.
My SPY put credit spread trading update for January 2018 — the market backdrop and the trades I made that month.
American corporations release their earnings reports every 3 months. The data gives investors an idea of how well the companies are doing financially. If an earnings announcement contains any information traders weren’t expecting, the stock price could plummet or skyrocket, depending on whether the release is negative or positive.
Options traders in December were laughing like this kid all the way to the bank! Well maybe not really. No retirement plans just yet. After a bit of a dry spell I closed 2 put credit spread trades. This month is a good example of why you never second guess your strategy. You will notice I put on 2 spreads a day apart with nearly the same strikes prices and the same expiration.
If you are an options volatility trader November was a boring month. I opened 2 put credit spread trades in November -- none closed. We will look at these closing trades in December.
We are in sit and wait mode. Just like this dog......
My SPY put credit spread trading update for October 2017 — the market backdrop and the trades I made that month.
Tradier is a powerful brokerage API that allows non-brokers to provide broker services. Let’s talk about why Options Cafe selected Tradier as our first official partner.
Instead of trading stocks or other securities, why not trade time? The long calendar spread allows you to buy and sell option contracts with different expiration dates, with the likelihood of profiting from time decay. The maximum loss of this strategy is capped at the net debit the investment incurs at the entry point.
Many stock traders are jumping into options trading. Options offer a fantastic way to diversify and to produce extraordinary returns. Let’s look at the key differences between options and stocks, and why so many stock traders are becoming options traders.
The short calendar spread is a good opportunity to profit from a stock’s impending upswing or decline. The maximum gain from the investment is the net credit received when entering the trade, and the maximum loss could be substantial. Therefore, this option strategy should only be used by experienced traders.
