Are Credit Spreads the Best Way to Invest?
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- Опубліковано 2 лип 2024
- In this video I discuss a study I did to compare the Profit and Loss of credit spreads vs. straight calls and puts and or stock. Credit spreads yield the most consistent profit with minimal loss if managed correctly. In my mind, and I've been successfully trading for greater than 4 decades, credit spreads are the very best investment vehicle - especially for the smaller retail investor.
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Part Two: Tools - Measured Moves and Fib. Extensions: • 3 Principle Trading Pa...
Part Three: Actual RUT Trades: • 3 Principle Trading ...
Part Four: Chart Setup: • 3 Principle Trading ...
Part Five: Vertical Credit Spreads: • 3 Principle Trading ...
Part Six: Actual SPX Weekly Trade: • 3 Principle Trading Pa...
Part Seven: Proper Trade Size: • 3 Principle Trading Pa...
Part Eight: Finding/Entering and Exiting a Trade: • 3 Principle Trading Pa...
Part Nine: Actual Forex Trade: • 3 Principle Trading Pa...
Part Ten: 2019 and Expected Returns: • 3 Principle Trading Pa...
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Brilliant Dale, love the simplicity of the comparrisons and explanation !
Glad it was helpful!
Some unsolicited thoughts:
For GS, it was below the 200 SMA therefore the trend could have been perceived as bearish.
For MDT, it was approaching an all time high, which may have led to some uncertainty. Of course hind sight is always 20/20.
Thanks for your vids. Really enjoy watching them.
Amazing Presentation, Top tier!
Question: what delta do you usually sell your short strike ? And can you do this with 3 expirations per week for example on Spx ?
Thank you
Use a delta of .2 for short strikes
@@dalebrethauer7796 I’m sorry for clarification .2 as in (20 delta) or simply (2) delta thank you again
As for the Straight puts that were in profit. Wouldn’t you close the position once it dropped to the mean?
Trading is easy with 20-20 hindsight.
Hi DAle, I see the percentages going up the left side of the earnings chart, what do the numbers across the bottom represent?
# of trades
Good stuff! What is the performance of a credit spread in comparison to a debit spread and/or a butterfly?
Far better because credit spreads are sellers of premium vs debit spreads are buyers. Time is on the side of credit spreads. Butterfly's have way to narrow of a price move to be profitable.
Great example scenarios Dale, love the way you teach....looking to become a monthly member in a few weeks......is the 3 months membership and get the fourth month free still available....Cheers