WebMar 1, 2024 · Because one options contract equals 100 shares of the underlying asset, the total credit received is $650. Scenario 1 Maximum Profit Let's say Apple rises and trades … WebAug 16, 2016 · There are three different types of credit spreads to consider: Credit spread or “vertical spread”: Simultaneously purchase and sell options (puts or calls) at different strike prices. Credit put spread or “bull put spread”: A bullish position in which you obtain more premium on the short put. Credit call spread or “bear call spread ...
The Best Option Trading Journal Spreadsheet - Options Trading IQ
WebJun 29, 2011 · These two types of spreads provide the opportunity to collect premium while still giving them protection so they can handle the unpredictable and inevitable market events. By selling out of the money-option spreads, one is taking on a higher amount of risk for a lower return, but the odds for success will also be higher. Let us look at an … WebThe only trade journal that can efficiently identify and group your trades by strategies and spreads. Track Expiration Dates on Options Easily identify and close expired trades to … red and purple anime background
Trading Credit Spreads for a Living and How to Get Started
WebTracking of open and closed trades and the statistics of your performance. The prices of the spreads you input on open and close of position. They dont need to change live. The underlyings price is used in some calcs, and it updates live. 2 tomatos_ • 2 yr. ago Neat. Too bad I rarely do credit spreads : ( 1 diamondzem • 2 yr. ago WebOct 19, 2024 · Creating A Credit Put Spread. A credit put spread is created by selling a put option and buying a lower strike put with the same expiration. Maximum profits is the credit received (the credit collected – the debit paid) and it would be earned if the options expire worthless. This would occur at or above the short strike at expiration. WebOct 13, 2024 · For bullish trades, we sell put credit spreads, which means we take in a credit for the trade. To close a put credit spread, we buy it back (debit). I use put credit spreads when I expect sideways to slightly upward movement in a stock. For put credit spreads to work, we just need to stock to stay above the put strike that we sell. red and purple color mix