Sunday, April 30, 2017

Credit Spreads

Credit spread, involves a purchase of one option and a sale of another option in the same class and expiration but different strike prices. Investors receive a net credit for entering the position, and want the spreads to narrow or expire for profit.


$MA and $NFLX were opened on April 27th.  $AAPL was opened on April 28th.  

$NFLX, this is my first time trading Iron Condor.  In order for me to keep my premiums, $NFLX has to be in the range of $140-165.  Currently it is trading at $152.20 as of April 29th.  

$MA, this is a bull put spread.  In order for me to keep my premiums, $MA has to be trading above $100.  Currently it is trading at $116.32 as of April 29th.  

$AAPL, this is a bull put spread.  The range is tighter than what I like it to be at, but I'm looking for a quick trade here with time decay accelerating fast into next week.  In order for me to keep my premiums, $AAPL has to be trading above $140.  Currently it is trading at $143.65 as of April 29th.  

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