Thanks for your advice stoic. Do you think about volatility at all when entering new positions? I understand that having an idea of where the stock is likely to go from technical analysis is key. But shouldn't volatility also be part of the equation when contemplating a new position?
Thanks for your response stoic. Can we dig a little deeper?
I know that bull/bear spreads can be structured as either a credit or a debit. When does it make sense to structure your trade as a credit vs. a debit?
I am thinking it would be best to use a credit spread when IV is high...
I am interested in trading vertical spreads. I would appreciate your words of wisdom or advice for executing these trades successfully. A couple of specific points I have been pondering...
1. I have read not to open a spread which shows less than an 85% chance of expiring in the money. Do...