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Futures Option Credit Spreads A to Z
"Knowledge is the most valuable commodity"
Option Credit Spreads A to Z Free webinar
Click on the thumbnail below to view this video on commodity option credit spread trading.
Credit spreads are a popular way for option sellers to attempt to take advantage of the high prospects of an option expiring worthless. The strategy is appealing to many because it provides premium collectors limited loss potential and reduced margin requirements. However, there are some glaring opportunity costs to trading credit spreads as opposed to naked short options. Join us in a detailed discussion on why credit spreads may or may not be the strategy for you.
Key points covered in this presentation:
What is a credit spread and/or an Iron Condor
What are the advantages of using credit spreads and condors
In what scenarios do credit spreads make the most sense
The opportunity cost of using credit spreads
BE calculations and margin comparisons
Understanding the REAL risk of trading credit spreads and condors
Determining whether or not credit spread trading is for you
The purpose of this class is to compare the advantages and disadvantages of a credit spread strategy and aids trader in determining whether the risks and rewards involved fit their personal trading profile.