CREDIT SPREAD, LEARNING EXPERIMENT REPORT # 8

OPTION UNIVERSITY

Well I'm into a CREDIT SPREAD today Saturday. This is a learning experience. It's a Saturday and the market is closed, so I used the closing prices on the OPTION CHAIN from Friday and figured out how to put on the CREDIT SPREAD for when the market is going UP. Sell a closer to the index PUT and Buy the one strike out PUT. Doing this on PAPER TRADING, on a sheet of paper to see what happens to it? 5 options each side in theory gave me a CREDIT of + $850. Using March Options to get quick results. I'm expecting the market to go up another 8 points at least.
I'm already maxed out of my available $3100 or so, in a CALL done earlier last week, and now past break even. Put on another CALL again with the Brokers VIRTUAL ACCOUNT before CLOSE on Friday. We shall see what we shall see?

LEARNING is a SLOW PROCESS and absorbing all the ramifications of OPTION UNIVERSITY TRADING is hard. You've heard of the University of Hard Knocks, which I've several degrees in. I kinda look at this OPTION UNIVERSITY the same way. An OPTION UNIVERSITY OF HARD KNOCKS. You learn by doing and making mistakes.