Not exactly what I had in mind
July 27, 2006 by Daniel Beatty
The ECA trade moved too fast for me. I saw the stock when it was at $54 today but unfortunately had to treat patients today and did not get in on the bounce. The trade would have been great It was possible to get in at .30 on an out of the money August $50 Put and then sell it for .70 at the most. So getting in at around .40 and selling at .50 would have made you a quick 25% and it would have been very possible to do that just in a few hours today. But like I said too fast for those of us that can not watch the markets all day.
Another reason I like credit spreads.
No Tags
Doc,
I just found this site and want to learn more about credit spreads, does this site provide info as to how to do this. I see a bunch of links but no step by step educational materials. Any suggestions?
Regards,
James
Absolutely James!
I have been going through how I trade credit spreads for the last 4 months in the posts I have been doing. If you go back and look through the posts you will see the way I trade conservative credit spreads. I will be producing an ebook here very soon that puts it all together in one place.
You can trade credit spreads more aggressively as well and I will be delving into that next. However with the markets the way they are it is not the time to do that. It looks like we may be going back to a bull trend but we have been bouncing back and forth all summer which is pretty typical.