Credit Spread
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The term credit spread means something completely different in bonds than it does in options — and that’s what confuses many new traders. Both use the same phrase, but they
If you’ve learned the basics of what a credit spread is, the next step is to see how it works in the real world. Here, I’ll walk you through two
Short version: a credit spread sells premium first and profits when price doesn’t move much, while a debit spread pays premium up front and profits from a directional move. Both
Credit spreads are my go-to for defined-risk, defined-reward trading on SPX and SPY. You’re paid a credit up front, you know your max loss on day one, and you can
Defined-risk doesn’t mean no risk. Early in my career, I sold credit spreads like clockwork—collecting small premiums—until a sudden market drop wiped out an entire month’s profits. That day taught
Credit spreads are one of the simplest ways to generate consistent returns in options trading — without taking unlimited risk. They allow you to define your maximum loss upfront while
Credit spreads are one of the most powerful strategies in options trading—especially if you’re looking for consistent returns without taking outsized risk. I’ve used them for decades, both on the
Why Credit Spread Alerts Are Gaining Traction in 2025 If you’ve felt overwhelmed by options alerts that promise the moon but create chaos, you’re not alone. Most traders I talk
Options trading can feel like a puzzle with endless pieces, especially when you’re just starting out. But credit spreads—a popular and beginner-friendly strategy—are like finding a corner piece that brings