Discussion in 'Options' started by KevinK, May 28, 2005.
I was wondering, what do you think are the best equities for credit spreads?
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,....?
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?
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?
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.
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.
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.
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