The math of credit spreads doesn't work well for overall positive expectancy if you take the full loss on too many. You could have 12 out of 15 winners, and if you take the full loss on 2 that might wipe out all your profits. For me, the 200DMA is the line, if that is breached, I will close the position and take the loss. The main reason for the credit spread is reducing the amount of capital locked up.
Best Of |
Favorites & Replies |
Start a New Board |
My Fool |
BATS data provided in real-time. NYSE, NASDAQ and NYSEMKT data delayed 15 minutes.
Real-Time prices provided by BATS. Market data provided by Interactive Data.
Company fundamental data provided by Morningstar. Earnings Estimates, Analyst Ra