Covered Credit Spreads can offer both horsepower and safety in volatile times. Here is one we recommend.
Hypothetical Situation: The futures trader has just read yet another article of how selling options can increase the returns in his portfolio. Curious, and somewhat excited, he picks up the phone and calls his broker. “I want to sell options. How would we go about that?”
“Sell Options!?” the broker gasps in disbelief. “Why would you want to do that? Don’t you know that selling options is risky!?” He then puts the investor on hold and calls the floor. “Buy 10 Crude Oil futures at the market!” he barks and then picks up the investor again. “Like I was saying, that’s probably more risk than you want to take.” He never blinks an eye. Continue reading
