Only 1 time my credit put spread got all in-the-money (the wrong way) but i was able to punt it and get the max profit out it anyway.
So today looking for entry levels. I don't have a clear cut level yet.
Here are the two that are on radar:
* sell Apr credit put spread 125/120: only pays .36 but on the safe side 90%+ chance of max profit
* sell Apr cr put spread 130/25: pays .70ish w/80%+ max prof chance. rew/risk= .16 (risk$1 to make .16)
I can do this 10 or 15x so won't be huge dollars but still money nonetheless.
NOTE: As with any trade there are risks but in this case the I am very comfortable with the dollars at risk. I always try to know and manage my risk; I ask 'what will I lose if the crap hit the fan in the worst possible way.' If I know the answer to this and am ok with it then I should be ok.
So today looking for entry levels. I don't have a clear cut level yet.
Here are the two that are on radar:
* sell Apr credit put spread 125/120: only pays .36 but on the safe side 90%+ chance of max profit
* sell Apr cr put spread 130/25: pays .70ish w/80%+ max prof chance. rew/risk= .16 (risk$1 to make .16)
I can do this 10 or 15x so won't be huge dollars but still money nonetheless.
NOTE: As with any trade there are risks but in this case the I am very comfortable with the dollars at risk. I always try to know and manage my risk; I ask 'what will I lose if the crap hit the fan in the worst possible way.' If I know the answer to this and am ok with it then I should be ok.
THIS IS NOT A RECOMMENDATION OF ANY KIND. I ONLY INVEST MONEY I CAN AFFORD TO LOSE.
