Thanks John. Interesting that you use FCX. That's one that I like to use as well.
Michael
--- In ConservativeOptionS
>
> I too have been doing put credit spreads. I try to do condors, but the call side generally has not been worth the hassle. The only good part about the call side : there is no extra margin required -- may only get 5 cents, but it is essentially free.
> Â
> I am greedier than thee. My goal is >3/4. But on my FCX march 60/55 -- FCX is at 75, so the only reason to close it down is if a better opportunity appears. Got $480 (net) for 10 contacts, could close it maybe for $100 plus ~$20 in fees. So it is at a good spot to close. If I go to make a trade, and can't because of margin -- boom, close her down.
> Â
> Credit spreads require attention, as do calendar spreads. Once they become safe, it is easy to let them lie. You have to watch the chart to see what to do -- MACD and slo stocastic often say get out before problems.
> Â
> I have been listening to the CSP guys, but I feel a lot safer with a credit spread than a CSP
> --- On Fri, 2/26/10, optionsmike <michael@...
>
>
> From: optionsmike <michael@...
> Subject: [ConservativeOption
> To: ConservativeOptionS
> Date: Friday, February 26, 2010, 5:50 PM
>
>
> Â
>
>
>
> Hello to all,
> Does anyone in the Group do credit spreads? If so, how do you limit your risk and close your trade? I like writing them and generally close them out early if I can get halfway back to zero from where I established the position.
>
> Michael
> www.safe-options- trading-income. com
>
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