MODULE 4: PLACING YOUR FIRST SPREAD TRADE

PLACING YOUR FIRST SPREAD TRADE

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• Do you ever trade the 3rd monthly?
• What if I can’t make up my mind on the direction (bullish/bearish/neutral) of the underlying?
• What if my target prob OTM short strike has significantly less liquidity than the next highest/lowest strike? Do I still anchor myself to my target prob OTM?
• What percentile for IV percentile is considered high and good enough to be considered for trading? Is there a thumb rule just as we have for probability OTM to be over 70%?
• Why not sell even longer dated options, so you can get even more premium?