Credit Spreads

Discussion in 'Options' started by KevinK, May 28, 2005.

  1. KevinK

    KevinK Guest

    Hey Everyone,
    I was wondering, what do you think are the best equities for credit spreads?

    Thanks
     
  2. MTE

    MTE

    Any stock/index can be a good credit spread candidate. The key is to pick the right strategy at the right time.

    What kind of credit spreads are you talking about - ITM, ATM, OTM, long term, short term,....?
     
  3. KevinK

    KevinK Guest

    Short term, I was looking at a Citigroup Jun 05 call credit spread. Selling the 45 calls at 2.50 and buying the 47.50 at .50. Do you think this is a good credit spread?
     
  4. brook89

    brook89

    Kevin,

    I just looked at the chart and 48 seems to be a resistance if you thank that way than 1.95 credit is very attractive i think.

    What do you use to find your spreads?
     
  5. MTE

    MTE

    Well, if you're considering selling an 45/47.5 call vertical with the stock at 47.30 then you might as well consider buying a 45/47.5 put vertical. It is exactly the same position, with the benefit of no early assignment risk.
     
  6. KevinK

    KevinK Guest

    I think it's an attractive credit because of the MACD crossover, negative stochastic symbol and the downtrend. I use optionsxpress to find my spreads.
     
  7. just21

    just21

    Take a look at www.poweropt.com smartsearchxl, it is customizable on just about any criteria you can think of. Different strategies, otm,itm, ta,fa, earnings, you name it. 14 day free trial.