Spreads

Trading credit spreads are a great strategy for those investors and traders who are looking to generate cash flow.

They form a major component with our program because they fulfill many of the criteria we need as traders. Specifically, they can assist in generating cash flow from a directional move up or down. Additionally, they are profitable if the market moves sideways also. Key, however, is that total risk is defined up front, prior to placing the trade – enabling many traders and investors to take on positions with total clarity in regards to the outcome and with specific regard to their own risk profile.
Less risky than selling a naked option, this strategy does not require the underlying ownership of shares and, as such is suitable for clients with a smaller account balance.

Spreads have been a cornerstone of our approach to the market over the past year or so, and our track record in this area, in particular, would suggest that our clients have enjoyed some significant benefits from this.