Credit Spread Trading Question 1 by Jeffrey Ziegler
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Hey Jeff, How much risk is there with Credit Spreads? I know selling options naked is risky but I want to avoid risk and preserve capital #1, and generate income #2.
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Depends on how far apart your strike prices are and how close you are to the actual price. You can structure your trade to have a little risk or a ton of risk. The most important thing is to never violate your money management rules.
JeffreyZiegler 11 months ago