The best stocks for credit spreads are the stocks that have the best potential moves. They are reputable large cap companies which have high open interest over 1000, lots of intraday volume and a tight bid/ask spread. Look for stocks that offer weekly traded contracts as well, since these options contracts are highly liquid. What…
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Credit and debit spreads are two fantastic options trading strategies. The credit and debit spread is a great way to reduce your risk while trading the stock market. Credit spreads are a selling strategy that is less directional based than debit spreads whereas you could make money if the stock trades sideways. Debit spreads are…
Welcome to the Bullish Bears Options Trade Series. Each blog in this series is going to focus on specific tactics, actionable criteria, and strategic planning to pull the trigger on an options trade. In this post we are going to discuss selling OTM credit spreads; why we trade them, what market conditions we are looking…
The best stocks for weekly credit spreads are on large cap companies that are highly liquid. Look for options contracts that have at least 1000 or more open interest and high daily volume. A tight bid/ask spread is important for entries and exits. Look for strikes prices near at the money to trade. How to…
Credit spreads allow traders to profit in a neutral market or slight directional bias. This strategy requires a margin account as well as a trading account with a larger amount of money. It might limit the amount of trades that you can make if you have an account less than $5,000. This is an options…
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