🔴If you do spreads with stock options, you are making a MAJOR mistake!

Let's take put credit spreads as an example:
1. You sell a put & collect $1,000 in premium.
2. You buy a put & pay $900 in premium
Net credit is $100. Simple.

BUT! Just by looking at that, doesn't it look conflicting to you?
🟢Selling puts = bullish
🔴Buying puts = bearish

If you are bullish, why on earth would you want to buy a put... DUMB. Do you ever see Warren Buffett buy a stock (cause he is bullish) then immediately buy a put under "just is case"
NEVER!

He just bought Google & United Health.
Did they also buy puts "just in case"
NO!

Stop following the herd and doing these garbage plays that you are doing on crap companies with no conviction.

Instead, just find a better play with much higher conviction and just sell puts straight up...

With the example above, you will make $1,000 in a single trade just by selling the put, vs your way of doing the spread and only making $100.

You gotta win 10 trades in a row to make what I make in 1!

Use your head.