For Investors and Active Traders Seeking Weekly and Monthly Income Trading Credit Spreads.
Mastering Advanced Credit Spreads Course is the perfect addition to the Master Trader Advisory Market Edge Swing and Options and Weekly Options Trader Letters.
Our Approach to Trading Advanced Credit Spreads
No matter what type of price action is happening in the market, weekly options hold incredible appeal because of the short-term low-risk strategy.
This Seminar will teach you how to find, place and manage option selling trade opportunities which expire soon (typically 10 days or less).
By selling short-term premium (options value), we are taking advantage of the option’s rapid loss of value because of what is called time decay.
In simple terms, in a short amount of time, the option will be worthless if it does not move in the options buyer’s favor. That is great for us!
We are getting paid to determine price levels above or below — or both — that will not be violated for a few days until Expiration! You will learn how.
It’s a beautiful thing and we’re going to teach you how to do it all!
- CREDIT SPREADS are an easy way to generate income as Options sellers.
- Margin requirements are low making it great for smaller investors.
- The deck is stacked in your favor because TIME DECAY hurts Option buyers.
- Even if prices move against you a certain amount, you still win!
- You do not have to sit in front of your computer all day.
- Spreads control risk because your maximum risk is pre-defined.
Mastering Advanced Credit Spreads Courseware Outline
1. Foundation of Options Trading and Terminology
You will learn the foundation of options trading; necessary option terminology and theory; how to read key components of an option quote screen; the key factors of options pricing, and how option sellers have an edge in selling options because of time decay, particularly if timed with a compelling chart pattern and high volatility.
2. Chart Patterns for Selling Credit Spreads
You will learn the patterns we use for selling high-probability credit spreads; Multiple Time Frame (MTF) analysis to increase the likelihood of success; plus setups for Professional and Novice Gaps and other patterns.
3. Selling Credit Spreads on Bullish Turning Points
You will learn how to regularly sell Bull Put Credit Spreads for weekly and monthly income using bullish turning points with Master Trader Strategies and chart analysis — particularly with high implied volatility; how to determine proper credit spread width and expiration; and how to calculate return on capital and proper stop loss.
4. Trade and Money Management
You will learn general considerations in money and trade management — including proper stop loss, taking profits, and adjusting and rolling positions, with examples; the proper way to analyze reward-risk with expected probabilities; and see how you can manage trades for profit, even if the stock goes against you.
5. Selling Credit Spreads on Bearish Turning Points
You will learn how to regularly sell Bear Call Credit Spreads for weekly and monthly income using bearish turning points with Master Trader Strategies and chart analysis — particularly with high implied volatility; and how to determine proper credit spread width and expiration.
6. Selling Credit Spreads on Climactic Patterns
You will learn how to trade the Master Trader Buy and Sell Setups, which are specifically defined reversal patterns that setup frequently when fear and greed reach extreme levels, including using Multiple Time Frame (MTF) analysis to increase the likelihood of success, and specific entry and management rules.
7. Selling Credit Spreads on High Volatility News Stocks
You will learn how to profit from stocks tanking on negative news, when volatility spikes because fear is great, timed with the charts — which we refer to as “after the storm subsides”; how to profit from High Implied Volatility Scans – coupled with wise words of caution.
8. Selling Credit Spreads Around Earnings
You will learn how to properly assess the reward-risk in selling speculative credit spreads before and after earnings when volatility is high based on your expectations on the predicted move; how to calculate potential gain and Breakeven Points at expiration on various strategies; and why Master Trader prefers selling credit spreads around compelling patterns after earnings to avoid gap risk and when the premiums are still relatively elevated for short-term risk.
9. Selling Credit Spreads on Volatility ETFs
You will learn how to interpret the CBOE Volatility Index (VIX), known as the “Fear Index”; why volatility rises on increasing fear, uncertainty, and demand for downside protection; how volatility products are priced – which favors shorting because of the headwinds inherent in the derivative products; review of tradable volatility products; how Master Trader shorts Volatility ETFs with the charts with spiked volatility and times entry with the S&P 500 ETF (and also shorting bull put vertical spreads with the same reversal pattern).
10. Selling Credit Spreads on ETFs
You will learn the benefits of trading Exchange Traded Funds (ETF); see Master Trader’s universe of liquid optionable ETFs; learn how Master Trader uses its Sector Matrix to find tradable opportunity; learn our simple ETF Short Credit spread Starting Checklist; and see examples of selling bull and bear credit spreads on liquid ETFs.
11. Selling Credit Spreads on Expiration Day & Myths of Short-Term Options
You will why Master Trader loves selling credit spreads that expire in hours, with no gap risk, profiting from rapid time decay for merely calling a top or bottom on a stock or ETF for the current trading day; learn why “Gamma risk” is of little concern to the trader using Master Trader Strategies to short options and manage with the charts; and learn from many examples of how to enter and manage short credit spreads on expiration day.
12. Risk of Selling Options Without Charts and Concluding Thoughts
Although success comes in many flavors, you will learn from numerous examples of actual option trade recommendations by others who don’t believe in technical analysis and take risk without a directional bias purely on the mathematics, which will reinforce with confidence everything you have learned in this seminar; plus a few concluding comments on your journey towards trading mastery.