If you’re trading options, you probably know about vertical spreads right?
I’m guessing that as you search the internet for information, you’ve probably read that the way to make money with options is by selling credit spreads.
Well, I care about you and I care about my clients, so I have to give you guys some tough love. I’ve been trading for 20 years. I’ve spent time on the floor of the CME. Built hedge funds, prop firms and even spent 3 years as a professional options market maker for the CBOE.
I can tell you with CERTAINTY: Professional traders DO NOT make their money by selling credit spreads.
The RISK is just TOO GREAT.
Have a look and see what you need to be thinking about as a trader: