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Low Risk Options Trading Strategy
Credit Spread | Iron Condor Spread | Vertical Spread
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7 Simple Steps
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CREDIT SPREAD HAS LIMITED PROFIT POTENTIAL

Almost all traders have the dream of hitting the jackpot - unlimited upside to their investments. While the dream of buying a stock and having it appreciate 1,000% in just a couple of years is attractive to all investors, in reality, it is actually quite difficult to find a "rocket." Of course, many rockers of the past, like Ebay, Sun, Dell, and Microsoft have continued to provide traders the hope that they have the ability to find the next big thing - provided enough hope for them to take a gamble on new companies, new technologies, new medicine, etc. Never ever invest in a company that does not already show strength. Traders who invest in the potential of companies are most likely the ones who lose the most during a bear period.

While credit spread writing have limited upside, it is a strategy that can provide very

good yield on a monthly basis and if used correctly, credit spread can be a very safe investment tool.

The credit spread and compound interest combination provide common traders with an extremely potent 'weapon' to turn the stock market into a steady avenue of monthly cash flow. You see...credit spread writing makes full use of time decay - making time an ally, The same goes for compound interest, for without time, the true power of compound interest will never be released. Combining both - skills to enter into credit spread positions with good premiums and more importantly, the use of time to grow and 'snow ball' wealth accumulation.

After all, most of us have limited capital but we can easily spare another 5 to 7 years waiting for our time to be financially independent.

 

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


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