Stock Market Options Trading cover image

3 Awesome Tips For Trading Credit Spreads

Stock Market Options Trading

CHAPTER

How to Trade a Credit Spread

The IV doesn't matter. When you sell an option at a certain level and you buy the very next one, both of those options have opposing Greeks. By trading a narrow credit spread, you are negating a lot of the Greeks because they're offsetting them. The closer you are to expiration from zero day, one day, seven days, it's really more of a delta trade with your spread which means you really need to have better analysis.

00:00
Transcript
Play full episode

Remember Everything You Learn from Podcasts

Save insights instantly, chat with episodes, and build lasting knowledge - all powered by AI.
App store bannerPlay store banner