Thread by @BullTradeFinder

🧵CREDIT SPREADS THREAD🧵

🚨Credit Spread Explained WITH EXAMPLE!🚨

This Strategy WILL become a SECOND INCOME!

For example if you get a credit spread with a premium of .20 between the spreads then your goal is for that premium to theta out to 0 for full 100% profit.

Example of spreads:

$SPY Put Credit Spread

Put credit spread is actually a bullish credit spread

$SPY Sold $382P

$SPY Bought $381P

$SPY Sold $382P

$SPY Bought $381P

You always sell the higher strike in this case $382 and buy the lower strike in this case $381.

This means you do not expect $SPY to go under $382 and if it stays above $382 by end of day you will make full profit of $100%

Now let’s do it the other way now…

$SPY Call Credit Spread (Bearish)

If you are expecting a down day or flat day you could do a call credit spread and a good example is:

$SPY sold $385C

$SPY bought $386C

Meaning you do not want spy to go over $385 by end of day for full profit!

Let’s also dive into the contracts/price associated with them so for example $386 and $385C have a $1 spread in between them as they are $1 apart.

This means for every contract you buy your collateral is $100 if you buy 10 contracts you are putting up $1000 for collateral.

Also let’s dive into the actual spread premium let’s just say the spread difference from $385C is .20 and the $386C is .10 so the spread difference is .10 this is your premium your call credit spread will be executed....

.....executed at which means if you buy 10 contracts your total profit is $100 as every 1 contract is 100 shares technically so $10 per contract and a total of 10 contracts equals $100 in maximum profit.

With this strategy I turned $25,000 into $720K in under 12 months.

Currently, I started at $2000 using this strategy with the @bulltradefinder community and am up 50% at $3000 currently.

THIS WILL LITERALLY BE A SECOND INCOME AS IT WAS BEFORE! I AM SHOWING IT IS POSSIBLE!

Here is a video of the spreads and how they work! #spreads #creditspreads #stocks #options #income #wealth #motivation #money #tradingspreads #trading #daytrader