Exploring Credit Spreads on SQ and SPY | Real-Time Trade Analysis
In this clip from the last LEO roundtable, we continued our discussions about credit spreads and talked specifically about some of the trades I made following discussion from the previous week.
After we talked about credit spreads on that original episode, I went out and started testing a few trades with a small amount of capital. My goal is to simply get some exposure to this strategy and see how I perform with it.
I think one of the most important aspects of investing/trading is to have a specific target in mind — what do you want out of the trade/investment?
For me, nearly everything related to investing comes down to income. What got me obsessed with this idea of credit spreads is how @rollandthomas explained the use case for them as a means to earning a sort of reliable income. Especially when you choose far out of the money strikes.
You’ll see more of my logic in the clips as I explain the price levels and talk with the guys about how I picked the strikes, looked for volume, the credit I earned, etc.
Again, the goal is simply to learn and to see if this strategy of selling far out of the money credit spreads is a viable way to earn a reliable income based on my personal market assumptions. I’m excited to see how this all plays out and I believe there’s a lot of value here whether you’re interested in credit spreads or simply interested in learning more about markets & trading more broadly.
Show Notes: https://leofinance.io/hive-167922/@khaleelkazi/pjjxuxhm
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