I am only trading new Bear Call spreads this weekend and next week. I feel the markets will continue to drop until the Federal Reserve lowers interest rates and even then the markets might still trade lower. This is a bear market now with sellers dominating the trading volume each day. The only safe strategy now is to trade against this trend. This is why I am only trading on the call side. These new trades are very conservative with smaller returns than in past months. I will try and complete Iron Condor trades for each of these 3 indexes only if the Bull Put trades are safe and 15 days or less are remaining.
For each new trade I will include a screen print of the exact OptionsHouse order ticket I processed today. I am doing this so that the details of the trade are clearly understood. It’s very important that you are selling and buying the correct options. I am also including a 2 point SPY ETF Bear Call Trade. Each point requires $100 in margin so each contract for this trade will require $200. We are trying to get an $8 credit per contract so the return on this trade will be 4.2% ($8/$192). Be aware that you will have higher brokerage fees trading these 2 point ETF’s credit spreads. This is why many subscribers who are trading ETF spreads are opening accounts with OptionsHouse. This broker only charges $9.95 per options leg, or $19.90 per spread trade, no matter how many contracts you trade.
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