OPTIONS ARE PERCEIVED TO BE EXTREMELY HIGH RISK

Every time we tell someone that we are into options traders, it never fails to amuse us when their faces squirm. Options are more complicated than stocks to understand; however, if explained correctly, options can and should be understood by all investors. We personally believe that the "option factor" is a contributing reason why more people do not write credit spreads. Many times, a person would have heard of horror stories of a friend or a relative who just had their hard earned money evaporated through options trading. We agree that it is a common story for many traders because they have traded options the worst possible way. Just like fire, it will burn or even kill you if not properly used. Used orrectly and it will improve your way of life. The same is true on options. It can be a very safe and productive investment vehicle when applied correctly.

When we were first introduced to credit spreads, the concept confused us. Even after we understood the concept and the mechanics of options writing, understanding the different scenarios still took additional time. We were eager to learn because we had a friend who became very wealthy through options writing. We knew it wasn't a boastful story created to impress us. However, if someone is not exposed to the benefits of options credit spread writing, he or she may not be motivated to gain an understanding due to the presence of options.

Options are one of the more difficult concepts of the investment world. However, the amount of knowledge and understanding necessary to be a successful credit spread writer is limited. Many retails investors may have written credit spreads before, but only a small percentage can claim that they can make a living out of it. CashFlow Avenue is established to provide that guidance.

WHY ISN'T EVERYONE WRITING CREDIT SPREAD?

No Knowledge of Credit Spreads

Options are perceived to be extremely high risk

Lack of understanding of credit spreads

Limited Profit Potential

Writing Credit Spread is Capital Intensive