Credit Spreads

For a long time, I avoided 0DTE (same-day expiration) SPX credit spreads, viewing them as high-risk, almost like gambling.

When trading options, one of the strategies that often comes up is the Put Credit Spread.

The global stock market sell-off in August 2024 was a wake-up call for many investors. Triggered mainly by the Bank of Japan's unexpected 0.25% interest rate hike, which sent shockwaves through global markets, the volatility index (VIX) spiked to one of its highest levels in recent history.

In my previous article on mastering put credit spread, I introduced a put credit spreads strategy that have a high probability of winning and are easy to manage.

Put credit spread (also known as the bull put spread) stands out as one of my favorite options strategies.