dani face dani quote

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...

Welcome to July

Happy Tuesday and happy holidays! I hope those who celebrated were able to enjoy a fun and relaxing holiday weekend with friends and family. I am so grateful that I was able to travel to Washington state to visit my family that I haven’t been able to see in quite awhile! It has been a … Read more

Read More

How to Trade in Vacation Mode

Hey traders! As June comes to a close and we approach another 3-day weekend and much-loved American holiday, the 4th of July, it’s a great time to take a bit of a step back from the charts. If you’re anything like me, when the markets are open, it is near impossible to look away. It’s … Read more

Read More

Trading Stock Splits + Pre-Earnings Momentum

Hey traders! Another day, another stock split. Not that Shopify (SHOP) really needed to split, after falling from an all-time high of $1762.92 to its last price pre-split at $373.21. In the past few years, trading options prior to stock splits in momentum favorites such as Nvidia (NVDA), Tesla (TSLA), Apple (AAPL), and more provided … Read more

Read More

Subscribe Today!

Want to walk the path to trading success together? Join Danielle’s “Five Star Trader” E-Letter for market insights, tips, tricks, and special bonuses.

Sign Up Now