Today, we are going to look at an example of a failed bull put credit spread trade. In fact, the trader woke up Friday morning to see that he was assigned 100 shares of Tesla, even though it was not at the expiration of his option. This is known as an early assignment. Let’s see … Read more
A bull put credit spread in options expresses an investor’s view that the underlying stock price will go up. The nice thing with options is that if that view changes, the investor can alter the trade to express another viewpoint. Contents In this example, a bull put spread is changed into an iron condor by … Read more
“Spreads spiked from 1.4 to 5.7 pips in 4 seconds during the last FOMC statement.”Most robots kept firing orders; most retail accounts bled. This tactical brief shows why the Federal Reserve news window is deadly for GBPUSD — and how DoIt GBP Master sidesteps the danger with a built‑in spread filter and self‑pausing logic. 1 · Why FOMC … Read more
Your EA wins 92 % of trades in Strategy Tester… then a single live position erases an entire month of profit. The silent culprits? Slippage and spread shock. 1 — Why “Perfect” Back-Tests Lie Strategy Tester assumes fixed spreads and zero-delay execution. Real markets? Never that kind.When liquidity thins or news hits, brokers widen spreads … Read more
The basic building block that all option traders learn is the two vertical spreads: the credit spread and the debit spread. Contents The credit spread is a favorite among option sellers, especially the beloved bull put credit spread. And we love them too – especially when the market goes up most of the time, and … Read more
Vertical spreads are the building blocks for more complex option strategies. It is good to have a strong foundation in them. They come in two flavors: the credit spread and the debit spread. The two have completely different characteristics, so try not to confuse the two. Contents Today, we are solely talking about the debit … Read more
We will assume you already know that a put credit spread has a positive delta, positive theta, and negative vega. Today, we will dive deep into how these Greeks change with different configurations of the put credit spread. Contents Questions like: How does moving a put credit spread closer to the money affect the delta? … Read more
Trading the Spread: Bitcoin ETFs vs. Cryptocurrencies Infrastructure ETFs In this study, we explore the application of simple spread trading strategies using Bitcoin ETFs and cryptocurrency infrastructure ETFs—two highly correlated asset classes due to the broader influence of cryptocurrency market movements. Given their strong relationship, this setup provides a compelling case for implementing pair trading … Read more