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I found options less risky than stocks. The only issue is that you need proper education. You should go to some free seminars to get a feeling of what it is and how it works. TOS provide free training on the basics, for example. This way you decide by yourself if you like it or not.

Thanks for the comments. I see that most of the indexes listed have low premium or/and low open interest (for OTM strikes), especially if we want to go OTM far enough to sleep at night. So I agree that the disadvantages of the SPX are not that bad for this credit spread strategy. At least...

Could you give few examples?

> Bad one : It goes to 55.00 > What happen in this scenario ? Is that call cover my short > with limited losses or without loss or not. In your example at 55 you will have a cost of $180. So, no free lunch , sorry ;-)

You can take a look on this site : http://www.ivolatility.com

One way to avoid exercise ... don't write calls ;-) Before expiration, if there is enough time value left, there is no reason to worry. The buyer will not give up this time value. At expiration, ITM call will be automatically exercised.