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3 Awesome Tips For Trading Credit Spreads

Stock Market Options Trading

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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.

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