STOCKS & COMMODITIES magazine. The Traders' Magazine

Register or Log In — Traders.com and STOCKS & COMMODITIES magazine

Options  |  MAY 2001

Option Credit Spreads by Lee Lowell

Limited Risk With Limited Profit Option Credit Spreads Selling options is usually a good idea. Hereís a tactic to do it. by Lee Lowell Option trading all comes down to probability of profit. Statistically, option sellers always have a better chance of profiting. Itís true that when you sell options your profit is limited, but your chances of walking away with that profit are high. The reverse is true for option buyers. Their potential profit is limitless, but the odds of achieving that profit are very small, especially with out-of-themoney› options. Why not put the odds of success on your side and learn how to become a smart option seller? Naked (uncovered) option selling entails unlimited risk and limited profit, but there is a strategy of option selling that has limited risk as well as limited profit. Itís called a credit spread.

by Lee Lowell

Technical Analysis of STOCKS & COMMODITIES
The Traders’ Magazine since 1982
has had over 1,226,237 subscribers from 174 different countries.
37,000 Page Traders’ Archive for $89.99

NOT A SUBSCRIBER?

To continue reading, sign-up for trial access to Traders.com and the S&C Archive37,000 pages of trading ideas!




After verifying your email address, you will have limited access to the S&C Archive, as well as access to a Digital Edition of S&C, and access to Traders.com Advantage and Working Money for 30 days.



DEPARTMENTS: Advertising | Editorial | Circulation | Contact Us | BY PHONE: (206) 938-0570

PTSK — The Professional Traders' Starter Kit
Home — S&C Magazine | Working Money Magazine | Traders.com Advantage | Online Store | Traders’ Resource
Add a Product to Traders’ Resource | Message Boards | Subscribe/Renew | Free Trial Issue | Article Code | Search

Copyright © 1982–2020 Technical Analysis, Inc. All rights reserved. Read our disclaimer & privacy statement.