Credit Spread

A credit spread is an options trading strategy that generates income by selling a higher-premium option and buying a lower-premium option, limiting risk. Ideal in high-volatility markets, it leverages probabilities for high success rates. With defined risk-reward, credit spreads suit traders seeking consistent profits while managing market uncertainty effectively

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Credit Spreads in Heightened Volatility: Why This Is the Seller's Market We've Been Waiting For

VIX above 30 means the same 0.16 delta credit spread collects 50-100% more premium with 2x the buffer. Same probability. 64% more expected income per trade cycle. Here's the playbook.

Andrew Crowder

How to Size Credit Spread Positions: Max Loss, Account Risk, and the 2% Rule

The exact 5-step formula for sizing credit spreads by max loss. Covers the 2% rule, 3-5% for experienced traders, spread width comparisons, and the 20-25% aggregate portfolio cap.

Andrew Crowder

Credit Spread Calculator: How to Analyze Returns and Risk-Reward Before Every Trade

Learn the 5 numbers to calculate before every credit spread: net credit, max loss, return on capital, breakeven, and probability of profit. Includes the ROC formula, 3 real scenarios, and a 6-filter evaluation checklist.

Andrew Crowder

Why I Sell Monthly Options Over Weeklies: Four Data-Driven Reasons

Four data-driven reasons monthly options beat weeklies for premium sellers: 2.6x lower gamma risk, OTM theta reality, 2.6x wider distribution buffer, and 18-22% better net P&L per dollar of risk.

Credit Spread Strike Selection: A Probability-Based Approach

Learn the probability-based framework for selecting credit spread strikes using delta. Covers the 0.15-0.25 delta sweet spot, how IV environment shifts your target, a 5-step selection process, and a P/L payoff diagram.

Andrew Crowder

Credit Spread Width: $2, $5, or $10 Wide?

Learn which credit spread width is right for your account. Compare $2, $5, and $10 wide spreads on ROC, max loss, 100-trade performance, and a 3-variable decision framework for matching width to your situation.

Andrew Crowder

Best Stocks for Credit Spreads: A 7-Step Selection Framework

How to find the best stocks for credit spreads using liquidity, IV rank, IV percentile, and expected move. A step-by-step framework for consistent profits.

Andrew Crowder

Bear Call Spreads: How to Profit When You're Bearish (or Just Cautious)

Learn how to trade bear call spreads for defined-risk income in neutral-to-bearish markets. Includes strike selection, management rules, and a real SPY example from a 24-year veteran.

Andrew Crowder

What are the Four Vertical Spreads? The Complete Beginner's Guide to Defined-Risk Options Trading

Learn what is a vertical spread options strategy, how it works, and why defined-risk trading beats naked options. Step-by-step guide with real examples.

Credit Spreads Explained: Bull Puts and Bear Calls

An easy-to-understand guide to bull put and bear call credit spreads, how they work, how they pay, how they break, and how to manage them with discipline.

Andrew Crowder

Options 101: The Basics of Vertical Spreads (Bull Put and Bear Call Spreads)

Andrew Crowder

The Art of Rolling High-Probability Vertical Spreads: A Practical Playbook for Options Traders

Learn how to roll bull put spreads and bear call spreads like a professional options trader. Use Delta as your early warning system to defend trades, maintain high probabilities, and protect your trading edge.