The "daily Call" From Option Alpha: Options Trading | Stock Options | Stock Trading | Trading Online

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, I’m going to go through our ultimate quick guide to credit spread option trading. Credit spreads are what I believe to be one of not only the key building blocks of many of the great options trading strategies, but also can serve as a wonderful vehicle for those of you who are trading with a small account or even just getting started with a small account. The beautiful thing about credit spread trading is that it gives you exposure to the high probability, high positive expected outcome of option selling with the defined risk characteristics that many people are initially attracted to when they look at long options like long puts and long calls. With a credit spread trade, all you’re simply doing is selling one option contract and buying another option contract typically further out of the money than the initial contract you sold and in exchange, you’re taking in a net credit between the sale and the purchase of