Credit Spread trades improving with rising market?

If you know the basics of trading credit spreads, you know that volatility is an important component. You WANT volatility. Volatility is your friend. Why? Because volatility is uncertainty and uncertainty drives options prices higher. The higher options prices are, the more premium we can extract from our credit spreads. However, sometimes you can get […]

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Volatility, volatility everywhere but…

After months of low volatility, traders of credit spreads like me are saying “No Mas!” For sellers of option premium, specifically credit spreads, these would appear to be the golden days as volatility has gone through the roof (although easing back a little as of late). However, despite inflated premiums, it has been hard for […]

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