Objectives of Index Spread Trading

• Investopedia defines a credit spread is defined as “An options strategy where a high premium option is sold and a low premium option is bought on the same underlying security.” The result of this transaction is to receive the difference in premium between to two options. Your goal would be to have both options expire worthless, allowing you to profit from the premium received.
  
  
• 1) Earn consistent cash profits month after month averaging a 3% (2%-5%) net return. Earn these profits in bull and bear markets.
  
  
• 2) Establish the appropriate stops to protect each spread trade from realizing a MAX loss.
  
  
• 3) Enter Bull Put Credit spread trades on the SPX, NDX and RUT Indexes that have a very high probability of expiring worthless. This is a low risk options trading strategy.
  
  
• 4) Complete Iron Condor trades to double the return on the required margin capital that only covers one side of the Iron Condor.