"It has become the mainstay of my option trading....
Keep up the great work!"
- L. Ciaglia

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CREDIT SPREADS
CoveredCall.Com is not just for covered call writers. We also offer a credit spread table which focuses on bearish and bullish credit spreads. We have had many, many excellent months with this table. We have provided links to a string of tables from 1998 so you can see how they are set up. If your option strategies include more than covered calls, then our credit spread table is something to consider. This service is included in the covered call membership.

The credit spread service at this site provides you with access to our Credit Spread table which features bull and bear credit spreads. Our bear credit spreads use call options and our bull credit spreads use put options. The term credit spread is the result of the following:

credit: because the option sold is priced higher than the option bought

spread: because it's a purchase of one option and the sale of a related option on the same stock at a different strike price

if it's a bear credit spread: we profit if the stock stays at the existing price or declines (in addition, in most cases it can also increase upto 10%)

if it's a bull credit spread: we profit if the stock stays at the existing price or increases (in addition, in most cases it can also decline somewhat)

With the bear credit spread an investor sells a call option and then buys the next higher strike price option, thus creating a net credit to the investor's account.

The bull credit spread using put options is the opposite of the bear credit spread using call options. Here, the investor sells a put option and then buys the put option with the next lower strike price, and again, creating a net credit to the investor's account.

We post credit spreads only during the 6th and 5th week prior to expiration of the options involved in the credit spread.

Here is a sampling of 5 months of Credit Spread tables from 1998 for you to look at to see the kind of trades we post. These were some pretty good months, not all months will be like this ... past results don't guarantee future results: June '98, July '98, August '98, September '98, and October '98 Credit Spread Tables.

For Taped Seminars on Credit Spreads click here.

For more information on bear credit spreads, click here.

Note that you must be approved by your broker to enter into spread positions.

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