Hello, I am new to trading spreads. I know how they work, but
Is there an optimal spread amount (between strike prices) for selling put credit spreads? I know you collect more premium when the spread is wider, though it takes more money to open. I've heard it's better to keep the prices close together (within maybe $5 of each other). But in this case, you collect less premium. Is a wider spread riskier and/or more profitable?
If this information is already posted somewhere, you could direct me to it. Thank you!
Jeffrey
Is there an optimal spread amount (between strike prices) for selling put credit spreads? I know you collect more premium when the spread is wider, though it takes more money to open. I've heard it's better to keep the prices close together (within maybe $5 of each other). But in this case, you collect less premium. Is a wider spread riskier and/or more profitable?
If this information is already posted somewhere, you could direct me to it. Thank you!
Jeffrey