What are your recommendations for the best profit:risk credit spread for the upcoming week? I am interested in the 500 - 510 OEX for the coming week depending on how the market opens. It is currently offering 88% probability to expire below the 500 strike. I am a newbie looking for insight on the coming week. Is there a blog somewhere that recommends the best credit spread for each week?
I didnt see this thread until now but I put on a 500/505 call spread and held it to expiration for a nice gain. Although it was a close call on Friday.
Yes, I did the same in my "paper money" account on trade monster. I'm still saving for the real thing. I think 10k is a good starting amount. On a side note...where can I go to learn more about trading options? All I really know how to do is use probability calculators with implied volatility to choose a strike that has at least 85% chance of expiring worthless.
this was posted on a thread about weekly options Video http://optionsrocket.blogspot.com/2...it-spreads.html
try this http://optionsrocket.blogspot.com/ look for "How To Profit From Credit Spreads WEEKLY" also look at the thread here on et, some one said not to do this tatic, no reason given, but i guess he felt it is too extreme. http://www.elitetrader.com/vb/showthread.php?s=&threadid=203327 also look at this thread on et, but the op says he is not doing credit spreads any more, look at the latter posts for his thoughts http://www.elitetrader.com/vb/showthread.php?s=&threadid=49586 i have had some luck with spy credit spreads, have not felt confident with the index futures.