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(as of Feb 20, 2025 22:18:25 UTC – Details)

In this book, you will learn how to achieve and execute a real trading edge in credit spreads by using three classes of indicators: trend, volume, and relative strength. Of these, relative strength is by far the most important. It reveals how a stock is performing relative to the overall market and serves as the most powerful leading indicator. The reason is simple: when a stock begins to outperform the market, it often continues to do so for days or weeks, creating a window of opportunity for trading put credit spreads (bull put spreads). This ‘staying power’ is even more significant than the momentum indicated by volume and trend. In this book, I’ll teach you the specific indicators I use and outline my step-by-step methodology for entries and exits.

My background in Statistics has allowed me to enhance my results through technical analysis in stocks, options, and futures trading. To amplify my credit spread trading with technical analysis, I set out to explore nearly every book available on the subject. What did I find? The specific technical methods I sought simply didn’t exist—at least not in a form with concrete, applicable rules. The available tools were either too general or too vague. The options world seemed satisfied with the inherent advantages of credit spreads, showing little need for further advancement—or at least, any advancements weren’t being shared.

So, I developed my own indicator-based system for trading credit spreads, which I’ve compiled into this book. If the title of this book caught your attention, you likely have some investment knowledge and aren’t new to options trading. However, if you’re unfamiliar with credit spreads, they are an options strategy designed to generate income by collecting premiums. Unlike selling naked put options, the risk per trade is capped. The returns for credit spread traders can be likened to the income generated by insurance companies—both profit by selling agreements/policies. This similarity to insurance provides an inherent advantage, which I explore in greater depth in this book.

That said, credit spreads are not a holy grail, and much of the information available about them (especially content aimed at beginners) is misleading. You’ll often encounter claims like, ‘Generate consistent income month after month, even in stagnant markets.’ Such statements can mislead readers into believing that credit spread income is as reliable as fixed-income investments like CDs or money market funds. Let me dispel that myth here: credit spread trading is trading—you need an edge to be successful, or you will eventually lose money. Don’t be misled, especially by those with vested interests.

Yes, credit spreads can deliver impressive returns due to the leverage inherent in options. Yes, with the right edge, credit spreads can outperform the market. But understanding where that edge comes from and how to execute it is critical—and that’s exactly what this book will teach you.

ASIN ‏ : ‎ B0DRPN6SFQ
Publication date ‏ : ‎ February 28, 2025
Language ‏ : ‎ English
File size ‏ : ‎ 4.8 MB
Text-to-Speech ‏ : ‎ Enabled
Screen Reader ‏ : ‎ Supported
Enhanced typesetting ‏ : ‎ Enabled
X-Ray ‏ : ‎ Not Enabled
Word Wise ‏ : ‎ Enabled
Print length ‏ : ‎ 91 pages