CREDIT SPREAD WRITING IS CAPITAL INTENSIVE

Many traders may think that they have to have tens of thousands of dollars to start writing credit spreads. While it is true on writing naked calls, credit spreads do not require a big sized portfolio. Many brokerage firms actually require a minimum of $100,000 to write naked calls or puts. That is because when you get into any naked positions, your loss is unlimited while your profit is limited. Many traders, including professional traders, have loss their entire account through naked positions.

Credit Spread writing, on the contrary, has limited downside because we hedge ourselves to protect our portfolios. One cannot have their entire account wiped out if a trade goes wrong. Through our Low Risk Option Trading Strategy, you would only require $2500 per recommendation to start (recommended $10,000).

The idea is to start small and allow your profit to snow ball (compound interest at work). Sit back, relax, and wait for time to do the rest of the work.

Start making your money work harder for you and your family. Start taking control of your financial destiny with The CashFlow Avenue Option Trading Strategy.

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