Hey Guys,
Fun announcement. We've added option spreads to the mix for our option trading account.
It's something that a lot of people asked for. It allows us to enter option trades for a lower price. And, as you probably could have predicted, the spread setup I've chose has a strong backtested edge with my trading strategy.
I will still trade simple options, but I'll use option spreads for the cases where the simple option price is higher than $5.00 per contract.
Some helpful videos:
The 3rd video on this page teaches the basics about option spreads. The 2nd video on this page shows how to follow my option spread trades. And the 2nd video on this page explains how I choose which strikes and expirations to use for my option spreads, and why we can sometimes profit with them even if the underlying stock price goes down.
One more update: for all option trades that occur from this point forward, I will set the time limit to be at 7am Pacific Time (30 minutes after the opening bell) on the day of the option's expiration. This does not apply to my existing open trades that will reach their time limits tomorrow.
I hope this update proves to be something that adds more value to the service. If you have any questions, just reply directly to this email and I'll be ready to help.
Eric