1. NEVER EVER do a credit spread when that stock has earnings during that option cycle.
2. NEVER EVER play FDA or other government agency announcements.
3. If a credit spread has an unusually high return for a little risk - DON'T TAKE IT, Trust me there IS a reason for the increased volatility... Someone somewhere knows something, Just move on to a more "normal" return trade.
Thursday, February 19, 2009
The "3 Rules" for Consistent Monthly Return with Credit Spreads
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