A credit spread doesn't fully protect you from assignment risk. If you are bearish then wouldn't it make more sense to purchase a put debit spread? That way you have zero risk other than the debit.
I will do that too. I try to pay the least amount up front as possible. My ideal trade is to recieve an initial credit, have capped risk, but also have non-capped profit potential.
Covered calls and naked puts are off the mark? lol ok. What's your idea of being "on the mark"? (I'm still waiting to be proven wrong)
Yo I think it’s fair to be frustrated with your trading performance or experience. However, vol trading is probably one of the juiciest sectors from a strategy standpoint. You’re right that few people get it, but those that do, are doing pretty well (though very few of those people are “backtesting on tos”, probably spend a lot of money on data and additional resources, and have many years of experience trading the securities). It’s totally fine for you to seek another strategy and asset class.
Just go to the site and check out the history and this month's expiries. I'm a REAL trader no higher education, just a bloke who did the 20+ years' hard yards after 2 years paper trading https://optionsinvesting.co.uk FYI-I forgot equity options long ago. Trade the index-there's a lot of them .
You guys aren't making crap vol trading. The risk reward is garbage so no way its sustainable. I am still waiting for one example. I simply posted that all these premium strategies are much ado about nothing. As I heard someone else say its like picking up a penny in front of a steam roller.
It's most often fairly priced. That's precisely why developing an edge in options for novices is virtually impossible.