This phrase is a common description for selling high probability defined risk options strategies like credit spreads. With high probability, the capital required and risk is extremely high compared to the reward. The two NDX credit spreads I had left open overnight from yesterday was risking $9,400 to make $600. At the time of opening … Read more
But I still manage to have extremely poor timing today. As soon as I entered a credit call spread on NDX with tomorrow’s expiration, it shot up and continued a tear for the remainder of the day. At market close, my short position is at 0.25 delta & a mere 80 points from my strike. … Read more
At 2:00pm today, Fed chair Jerome Powell gave a live report on the Federal Open Market Committee’s (FOMC) projection for inflation and economic growth over the next two years. Basically he said more of the same that he’s been saying for weeks: nothing is changing in the near future and the fed will continue to … Read more