Credit spread 1:1

Discussion in 'Options' started by wxytrader, Nov 30, 2023.

  1. So going by the box setup here if I get filled at this price I am locking in .03 cents profit. So with 250 contracts I can lock in a $500 profit with no risk? So why isn't everybody doing this? Oh maybe because you will never get filled at that price? Show me an example where you have actually locked in profits...and how often can you do that?

    bx.png
     
    #11     Nov 30, 2023
  2. TheDawn

    TheDawn

    Read on the concepts of implied volatility vs real volatility. Once you understand these two concepts, you will understand what's the real risk with options and why credit spreads seem to be more lucrative than debit spreads.
     
    #12     Nov 30, 2023
  3. Yeah but all volatility is implied when it comes to options pricing.
     
    #13     Nov 30, 2023
  4. taowave

    taowave

    Just when I thought it couldn't get any worse
     
    #14     Nov 30, 2023
  5. Overnight

    Overnight

    The night is young.
     
    #15     Nov 30, 2023
    taowave likes this.
  6. destriero

    destriero


    Dood, same strikes are =

    Just go away.
     
    #16     Nov 30, 2023
    taowave likes this.
  7. It doesn't matter that the strikes are equal, the short call performs better than the long put. Look at the screenshots.
     
    #17     Nov 30, 2023
  8. taowave

    taowave

    Hey,you are right.My advice is to average down..There should be plenty of opportunity...





     
    #18     Nov 30, 2023
  9. destriero

    destriero


    upload_2023-11-30_16-51-56.png
     
    #19     Nov 30, 2023
  10. Yes and in the original post I said what's the point of selling a call vertical spread ITM to get to 1:1 when you could just buy a put debit spread instead and carry a better risk reward...but it turns out the call credit spread will out perform the put debit spread.
     
    #20     Nov 30, 2023