Tag Archives: credit spreads
Credit Spread Volatility – Implied Volatility vs Historic Volatility

Credit Spread Volatility | Using Implied Volatility & Delta

Credit spread volatility is critical to the selection and management of income-producing market positions. Whether using Implied Volatility (IV) or Delta, or both, the investor must consider option volatility, along with other data-driven trade selection criteria, to produce the highest reward/risk ratio trades.

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Best Iron Condor Strategy

Iron Condors and Credit Spreads are ideal for conservative investors seeking recurring income. Here are the 9 “The Monthly Income Machine” SaferTrader.com screening criteria to identify the best Iron Condor and Credit Spread candidates.

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Flash Crashes – Can Options Help Avoid Damage?

A recent question at the SaferTrader.com FORUM has prompted this closer look at “Flash Crashes.” Are we indeed powerless in the face of a flash crash, or are there defenses? Recognizing a Flash Crash: Hindsight Required It’s not just the market dropping sharply. A sudden hard fall in an individual stock, ETF, or the market […]

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Mini Options – Do They Fit Your Income Investment Game Plan?

On March 18, 2013 investors began making use of the new exchange-traded mini options. Let’s take a look at the specifics of the options and at: (1) how they might fit in the options market in general, and (2) how they might fit “The Monthly Income Machine” credit spread program in particular. The Underlyings Mini […]

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Option Order Entry Mistakes – How To Avoid Becoming Shark Bait

Even seasoned option investors can ruin a trade – and their whole month – by lapses in the mechanics or strategy involved in placing their orders. Here are some unfortunate moves you definitely need to avoid lest you become shark bait for the fisherman on the other side of your option credit spread or Iron […]

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Credit Spreads | Trade Entry Criteria and Screening Service

This “white paper” will detail: 1. Option Credit Spreads for the risk-adverse income seeker 2. “The Monthly Income Machine” specific trade entry criteria I recommend for selecting promising option credit spread candidates, 3. A new, completely optional screening service that completes this most time consuming part of identifying conforming credit spread candidates for you. Contact […]

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Credit Spreads Target: 4-8%/Month Income for the Risk-Adverse

Credit Spreads Target: 4-8%/Month Income for the Risk-Adverse

Dear Income Investor Before we go any further, let’s make sure you are at the right place. If you nod your head “yes” to each of the following statements, you will be very glad you’re here because SaferTrader and the Monthly Income Machine were designed specifically for you! I want more monthly income – much […]

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Credit Spread Stop Order – Conventional or Contingent?

When using option credit spreads to generate monthly income, you need to place a stop loss order to establish a MRA (maximum risk amount) for every trade. In previous articles we covered protective stop orders for credit spreads in terms of money management (Account Money Management – Avoid Account Death), and with respect to alternatives […]

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Credit Spreads & Iron Condors During Low Volatility Periods

From time to time, the markets will begin a period of unusually low volatility. When this occurs, it can be more difficult to identify attractive income-generating credit spread trades that meet “The Monthly Income Machine” premium requirement at the strike prices the prescribed distance from the underlying stock, ETF, or index. So let me weigh […]

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Weekly Options – How and When To Use or Avoid

Recently, the use of Weekly Options has generated more SaferTrader.com “how and when to use” questions, emails and members-only Forum commentary than most other subjects. In this “white paper,” we’ll look more closely at the opportunities and pitfalls associated with this intriguing investment instrument. The Appendix at the end of this article provides a list […]

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