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u/Snoo-71082
5 days ago
Question
Am I using credit spreads correctly?
I’ve been do credit spreads for way out of the money puts where I would sell a 300 Googl put and then buy a 200 Google put. This helps lowers the amount of cash I need and generates the same income as if I was doing a put closer to the money. Also too generate the same amount of income I will usually sell double credit spreads so instead of one google put I would do 2
Is this a reasonable strategy and using credit spreads correctly?
I only do this for big names like Google, amazon, NVDA where I know the moves won’t be too extreme and I’m fine with holding