Options Analysis…

Hey 5-Star Trader,

As a self-made retail trader, I know firsthand how difficult it can be to learn everything you need to know about options through the internet. With countless strategies swirling around, I knew I had to decide what kind of trader I wanted to be and form a plan of attack.

Through lots of trial and error, one thing that really helped me was differentiating between key options strategies and creating a pro and con list for each. This week, I want to show you my table for “Selling In The Money Put Credit Spreads.”

Weighing Your Options…

The Takeaway:

As you can see from the image above, there are quite a few pros and cons for this strategy. So what next? After I have made my list, I then choose what market scenarios would work best for this strategy. 

For selling in the money put credit spreads, I find the best time to do this is when one or more of the following instances are true:

  1. You want defined risk
  2. You believe an equity will stay above a specific price
  3. You want to sell premium, instead of buying it
  4. You want a strategy to even out the positive deltas you’ve purchased
  5. You want a relatively stress free strategy

Weighing your options is a huge part of becoming a successful trader. Even if my strategies don’t resonate with you, I would highly recommend creating a pro and con table for each method you are struggling with. The results might surprise you!

-Danielle =) 

You can find more tips and tricks just like this in my Options 101 course.

Up Next...

Waiting on a Dip Buy in Microsoft (MSFT)

Hey traders! The Nasdaq is pulling back today, which, in my opinion, is a much-needed move. With the extended market, buying anything with an edge was nearly impossible. So, while pullback days aren’t as much fun as when the market is roaring (unless you’re short), I use them to identify opportunities. In this case, I’m … Read more

Read More

When a Ticker Makes Targets

Hey Traders! On Monday, I sent you a video about my short-term setup in Tesla, along with my $250 price target. You can check it out in the Tweet below… Since then, the squeezes I noted fired to the long side, and Tesla traded directly to my Fibonacci price target at the 1.272% extension level. … Read more

Read More

A Trade Setup in TSLA

Good morning, traders! The Nasdaq futures are choppy at 16,000 after making quite the run. So, what’s next? Looking for the next round of setups, of course! When tickers and indexes get sticky, squeezes will start to consolidate. Those squeezes generally occur on the lower time frames first. When those squeezes fire, they can either … Read more

Read More

Subscribe Today!

Want my up-to-date analysis, setups, top trading tips, and more? Be a Five Star trader, and join my free newsletter today!

Sign Up Now