HOW TO ENTER A CREDIT SPREAD.
**Lions. Most traders/people are familiar with buying calls and or puts… **Simple “Buy To Open and Sell To Close.”
Those trades turn you into a speculator…
The trades I put out for you every week, (and frankly we have been KILLING it…) turn you into A MARKET MAKER.
**Lions. The spreads I post for you every week consist of two legs, **and they could not be easier to set up!
HERE IS HOW TO DO IT.
Most brokerages make this very simple… we are setting up a two-leg trade in ONE order.
**Go to the options chain for SPY. (See the highlighted in ****blue **example below). I trade SPY however, you can do this with ANY ticker symbol.
**Choose the expiration date. **
**Select a Vertical Spread/Bull Put Spread. **(I may occasionally post **Bull Call Debit Spreads or Bear Put Debit Spreads). **But don’t worry! **I will outline EXACTLY how to set these up when I post the weekly trade. **
**As an an example. The trade below highlighted in blue is called a BULL PUT CREDIT SPREAD. When I send out a trade for you every week, (generally on a Saturday), I will fully outline the trade for you, and… ****tell you what the trade is called. **
**As in the example below, **I post it like this.
Ticker SPY. BULL PUT CREDIT SPREAD. Expiration. October 2, 2026.
SELL. SPY 740 Put. BUY. SPY 738 Put.
**You enter both legs together as one spread order, **not as two separate trades.
Lion. The moment the bull put credit spread fills, (AS IN THE EXAMPLE ABOVE), the net premium is credited to your account. YOU GET PAID TO PLACE THE TRADE!
**AND THATS IT! **Simple. Straightforward.
**In the example. **
Ticker SPY. BULL PUT CREDIT SPREAD. Expiration. October 2, 2026.
SELL. SPY 740 Put. BUY. SPY 738 Put.
Make sure the ticket says SELL TO OPEN 740 PUT/BUY TO OPEN 738 PUT before sending the order.
And you are done. Two legs, one transaction, defined risk!
GM
