Trade Idea: Bearish Call Credit Spread 1-7-2025 (Closed)
A call credit spreads to help hedge bullish positions
This bearish call credit spread can help reduce your exposure to market declines without having to close bullish positions.
This is a quick turnaround trade with a high chance of success and an IVR of 98.8. The stock is starting to decline and the strike is above resistance. Meanwhile, the stock market is dragging most stocks lower.
Lastly, I share a strategy for turning this into an infinite return trade by rolling the collateral until enough credit is received to free future trades with the same strike difference free.
This is not financial advice. Please do your own research and do what’s best for you.
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