Short Lived Spreads

T

TinGull

Hi there,

I'm wondering about short lived spreads, mainly credit spreads, and if anyone has had much experience or success with doing it. I'm mainly wondering about selling a call spread when the market is at a technical turning point, and then closing it out in a few days to capture whatever it captures. The risk seems very small and the reward (at expiration) is big. I'll paper trade one to see, but was curious as the boards' concensus.

Thanks!

Chris
 
Quote from TinGull:

Hi there,

I'm wondering about short lived spreads, mainly credit spreads, and if anyone has had much experience or success with doing it. I'm mainly wondering about selling a call spread when the market is at a technical turning point, and then closing it out in a few days to capture whatever it captures. The risk seems very small and the reward (at expiration) is big. I'll paper trade one to see, but was curious as the boards' concensus.

Thanks!

Chris
More...

Check out the Vertical Spreads for Aggressive Growth in the Journal section here on ET. Cache and Rallymode have a lot of experience with this type of trade. I've papertraded a number of them and have traded a few live and I like what I see.
 
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