My goal is to provide relevant commentary on topics of options investing, risk management and financial planning in a format that is easy to understand and thought provoking.
Saturday, November 23, 2013
2013 - Great Annual Return
We have had an excellent year trading RUT and IWM bull put spreads. All our trades (Jan-Nov) have expired worthless. Our final trades of the year should expire worthless on the 20th of December. Credit Spread trading is a wonderful way to generate a monthly income. The only times in past years we experienced a monthly loss was when our trades were automatically closed out early due to a market crash. These events will continue to occur in the future. This is why we must always use a contingent stop loss order. This type of order prevents a max loss from being realized.
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