Credit spread volatility is critical to the selection and management of income-producing market positions. Whether using Implied Volatility (IV) or Delta, or both, the investor must consider option volatility, along with other data-driven trade selection criteria, to produce the highest reward/risk ratio trades.
If the strike prices of a contemplated credit spread order no longer conforms to your trade entry requirements because of a substantial price change in the underlying,, you may be able to restore that conformation by switching to nearby strike prices.
Here are the 8 option credit spread mistakes you must avoid to maximize your credit spread & Iron Condor profit results with “The Monthly Income Machine.”
A recent question from SaferTrader community has prompted this closer look at Flash Crashes. Are we indeed powerless in the face of a flash crash, or are there defenses? Recognizing …
On March 18, 2013 investors began making use of the new exchange-traded mini options. Let’s take a look at the specifics of the options and at: (1) how they might …
Even seasoned option investors can ruin a trade – and their whole month – by lapses in the mechanics or strategy involved in placing their orders. Here are some unfortunate …
This white paper will detail: (1) Option credit spreads for the risk-adverse income seeker; (2) The Monthly Income Machine specific trade entry criteria I recommend for selecting promising option credit …
When using option Credit Spreads or Iron Condors to generate monthly income, you need to place a stop loss order to establish a MRA (maximum risk amount) for every trade. …
Chances are you know that elemental sodium and elemental chlorine are both absolutely deadly. Put some sodium in water and it immediately blazes into white-hot flames. Inhale a few breaths …
From time to time, the markets will begin a period of unusually low volatility. When this occurs, it can be more difficult to identify attractive income-generating credit spread trades that …
Recently, the use of Weekly Options has generated more SaferTrader.com “how and when to use” questions, emails and members-only Forum commentary than most other subjects. In this “white paper,” we’ll …
I’m often asked what stocks, indexes and ETF’s I use for generating my own monthly income credit spread and Iron Condor option trades. The book The Monthly Income Machine spells …
As it should be, the main trade management focus of “The Monthly Income Machine” is on properly handling the occasional position going the wrong way. But we should also consider …
Often, the markets themselves provide the best reminders of why we need to use all of the Monthly Income Machine entry rules when establishing our income-generating credit spreads and iron …
With a quill pen and some parchment paper, Isaac Newton, in a single summer, created calculus AND unraveled much of the mystery of the physical laws that drive the universe. …
