How to Find the Best Credit Spreads in Under 60 Seconds
Two credit spreads can carry the same risk and pay you very different amounts. Here's how to find and rank the best bear call and bull put spreads in under 60 seconds with StockCharts and OptionsPlay.OptionsPlay Chief Strategist Tony Zhang walks through why credit spreads are one of the most useful options strategies for newer traders (defined risk, a higher probability of success, and income whether a stock drifts your way or stays flat), then shows how to skip the dead ends that make manual options research so draining.
In this video:
- The 4 things every credit spread has to pass: direction, risk/reward, liquidity, and earnings
- Running pre-built bearish scans and ranking every bear call spread on the list
- Why the top spread on a list can pay $1,200 while the bottom pays $840 for the same risk
- Adjusting days to expiration, max risk, and strike aggressiveness
- Running credit spreads on your own StockCharts scans and sector lists
- At the money vs. far out of the money: what the risk/reward really looks like
- A simple 3-step routine for finding trades every day
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❗️DISCLAIMER
Past performance is not indicative of future results. Neither the Show Participants
nor StockCharts.com guarantee any specific outcome or profit. You should be aware of the real risk of loss in following any strategy or investment discussed on the show.
Strategies or investments discussed may fluctuate in price or value.
Investments or strategies mentioned in this show may not be suitable for you and
you should make your own independent decision regarding them. This material
does not take into account your particular investment objectives, financial situation
or needs and is not intended as recommendations appropriate for you.
You should strongly consider seeking advice from your own investment advisor
0:00 Finding the best credit spreads in under 60 seconds
1:36 The OptionsPlay add-on
3:18 Why credit spreads: defined risk and reward
4:33 Higher probability of success
6:51 Getting paid when a stock stays flat
7:15 The dead ends of manual options research
10:54 The 4 filters: direction, risk/reward, liquidity, earnings
13:52 Opening the OptionsPlay Strategy Center
14:35 Pre-built bearish scans
16:04 Ranking bear call spreads out of the box
17:05 Example: 21-day bear call spread on semiconductors
18:18 Same risk, very different reward
20:42 Bank of America head and shoulders setup
22:11 Choosing aggressive, balanced, or conservative strikes
23:52 Built-in liquidity and earnings screening
24:59 Scanning for weekly options
27:19 Does max risk change the risk/reward ratio?
28:31 Using your own StockCharts scans
29:42 Building an undervalued breakout screener
30:29 Saving and scheduling a scan
31:29 Credit spreads on your custom list
33:24 Scanning a sector: S&P 500 semiconductors
35:22 Bear put spreads: Nvidia vs. Marvell
36:38 Do you need to be right on direction?
38:08 What the backtests show about far OTM spreads
38:53 The 3-step daily routine
42:19 Wrap-up
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