FAQ

How do I place the trade?

– Depending on the brokerage firm you use, the exact way you place the trade will vary. The most important thing to know is exactly WHAT trade you want to place and having the NUMBERS you need to place it. If you are having trouble placing a trade using the data in our alerts, just call customer service at your brokerage firm and ask them to walk you through exactly how to place the trade using their system.

 

Credit Spread Cheat Sheet is a fraction of the cost of other trade info subscription companies. Why?

– Other companies are triple and quadruple the amount we charge. This is because they include a whole host of things the average investor neither wants or needs. Newsletters, notes from the editor, product promotions, forecasts, outlooks, opinions, etc. All the average investor really wants is for someone with a proven track record to tell them what’s a good trade to place for consistent returns and give them the numbers to do it. That’s what Credit Spread Cheat Sheet provides. If you want thousands of words of investing opinions, you’ve come to the wrong place.

 

What is the minimum amount of money I need to use this strategy?

– In order to place an Iron Condor credit spread trade, you will need a minimum of $1000 per trade.

 

What is an Iron Condor?

– The iron condor is an option trading strategy utilizing two vertical spreads – a put spread and a call spread with the same expiration and four different strikes. This type of credit spread strategy is what we specialize in at Credit Spread Cheat Sheet.

You can find more info on Iron Condors at Investopedia.

 

What is a credit spread?

– An options strategy where a high premium option is sold and a low premium option is bought on the same underlying security. There are many types of credit spread trading strategies. Here at CSCS, we specialize in the strategy known as the “Iron Condor”.

– An example of a simple credit spread trade would be buying a Jan 50 call on ABC for $2, and writing a Jan 45 call on ABC for $5. The net amount received (credit) is $3. The investor will profit if the spread narrows.

Can also be called “credit spread option” or “credit risk option”.

 

What security do you trade?

– We specialize in trading the Russell 2000 Index (RUT).

 

How do you pick the expiration date on the trade?

– When choosing an expiration date on our credit spread trades, we typically pick the date closest to 45 days out from the day we are placing the trade.

– For example, if we are placing a trade on January 1st, we will choose the expiration date closest to Feb. 15th. Luckily for you, we include the expiration date we chose in our trade alerts.

 

What brokers do you recommend?

– We don’t endorse any particular broker over another. Our traders and subscribers use many different brokers, all with their own pros and cons. Find one you like, with a system you can understand and stick with them. If you’re having trouble placing a trade, just call your broker and let them know you’re wanting to place an “Iron Condor” trade and they should walk you through how to do it using their system.