Index Option Credit Spreads
Learn how we use our proprietary Options Volatility Analysis and Statistical Probabilities to put the odds in your favor.The chart below shows 2007 year-to-date results for our index options credit spreads. The results are based on trading both Weekly and Monthly OEX and SPX option credit spreads and take into account position sizing and broker commissions. The chart shows a total return of 147.8% versus 8.3% for buy and hold. These are actual (not hypothetical) returns achieved by our auto-traders. The Peak Investing credit spread system has the following advantages over other investment strategies:
- 94% winning trades year-to-date.
- Average 5.9% gain per week.
- No overlap between the Weekly and Monthly options trades. Both can be traded with the same amount of capital, making possible a trade every week.
- Minimum market exposure. The average trade lasts only 2 days.
- A simple, proven, effective method for managing risk.
- Auto Trading available with ThinkorSwim, the premier online options broker.
- Email Alerts detail the exact trade set-up. No guesswork involved.
Peak Investing Equity Build: 2007 YTD
Trading the "Weeklys"
The Chicago Board Options Exchange (CBOE) has launched a new type of option called "Weeklys". Weeklys are short term options based on the S&P 500 Index (SPX) and S&P 100 Index (OEX). As their name implies they are weekly contracts. These contracts were developed to help investors trade around certain news or events. In general, Weeklys have the same contract specifications as standard options, except for the time to expiration. New series are listed each Friday, expiring the following Friday. (The exception being that no Weeklys will be listed that expire the third Friday of the month -- the expiration week for standard options). Both SPX and OEX Weeklys are cash-settled contracts and offer the same continuous, two-sided quotes as standard options. SPX Weeklys are European-style exercise with A.M. settlement, and OEX Weeklys are American-style exercise with P.M. settlement.Two-Week Free Trial!
The PeakInvesting site includes our successful credit spread strategy, covered call writing, our proprietary Options Volatility Analysis and SPX Forecasts. And now with Auto-Trading, its the best options site on the web. Sign-up for your Free Trial and receive both our Weekly and monthly credit spread recommendations.