Selling Spreads

Selling spreads can be a very profitable strategy. Instead of shooting for one or two big home runs it tries to shoot a lot of singles which eventually add up and can cause you to get a great return in your trading account.

The major benefits of selling spreads are that it.

1. Is Consistent

If you are buying options you might be able to get those huge 200% returns on one trade. But that is not the norm; it can come after a series of losses. Sometimes all those amazing gains do is to help you pay back the losses you have gotten by trading options.

On the other hand selling spreads can be a very consistent way of making money. Out of the money credit spreads already have a high chance of being profitable. And if you combine it with fundamental and technical indicators the success rate could skyrocket.

2. Less Stress

The stock market can be a very stressful place that is for sure. But it is less stressful to simply sell options and let them expire worthless. Of course it does not mean you can just sell random options and be profitable, there still is a lot of learning to do. But if you get the hang of it, it can be a very low stress way to pull money out of the stock market.

3. Can Add up

A trading account that is consistently making small gains is going to grow over time. If I could make a small percentage gain consistently it can be more
profitable then a large gain after a series of losses.

For more on option spreads visit http://www.stocks-simplified.com/Option_Spreads.html

For more on selling puts visit http://www.stocks-simplified.com/selling_puts.html