Beginner in selling Bull Put Spread

Discussion in 'Options' started by Megane, Aug 20, 2017.

  1. Yup, no problem. Always happy to help a fellow options trader (who is using them correctly, and not just to get inappropriate amounts of leverage ;))
     
    #21     Aug 23, 2017
  2. Megane

    Megane

    I used ThinkorSwim but it's un unavailable for Canada. The only platform at a decent price for options in Canada is Interactive Brockers. All others are so expensive that it grabs way to much of your profit.

    When I choose a stock, it is because I know this stock for a while because i'va been trading it and have a better feeling of it's mouvements. As for the strike I choose, I like to have 90%+ chances not being exercised and usually take 30 days or so.
     
    #22     Aug 23, 2017
    viruscore1 and drm7 like this.
  3. Megane

    Megane

    I only trade with the money I actually have in that account which is a small portion (10-20
    %) of my total investment portfolio.
     
    #23     Aug 23, 2017
  4. ironchef

    ironchef

    If you are so sure, why don't you just go long or short instead of doing a spread?
     
    #24     Aug 25, 2017
  5. The one change you might consider is trading wider spreads with reduced number of contracts. This will reduce commissions and might improve slippage.
     
    #25     Aug 26, 2017
    rtw likes this.
  6. Diagonals because of the low volatility? Thanks
     
    #26     Aug 26, 2017
  7. No, just a long enough term market bias to where I could play them between earnings seasons. But I do open the longs optimistically on low volatility, and the shorts on high.
     
    #27     Aug 26, 2017
    raf_bcn and trader42 like this.
  8. Megane

    Megane

    90% or more is the number I get in ThinkorSwim, I like to stay on the safe side for now and this is what I consider relatively safe for me. It might change in the futur, will see.

    What about you, would you do those ones without spreading it ?
     
    #28     Aug 26, 2017
  9. Megane

    Megane

    ....might improve slippage....Whatdo you mean ? I guess my english is lacking here, sorry if it looks like a silly question !
     
    #29     Aug 26, 2017
  10. Trading less number of contracts, you will likely lose less on bid/ask spread in sum.
     
    #30     Aug 26, 2017