Credit spread question…
Hi long time lurker here. First post. Got a question that’s probably been asked before but need some confirmation bias before I go through with it.
Has anyone here had success selling credit spreads on their credit then opening more spreads with the new credit, etc, etc?
I’m considering opening 10 $BABA 210/$200 put spread contracts expiring 1/20/23. This will net me a credit of $5,430, which I could then use to open 5 more spreads, which I could then use to open 2 more then spreads which I could then use to open 1 final spread. The total credit received would be some where between $7-$8k. An 80% ROI in a year and a half sounds pretty good assuming $BABA stays above $210. Thoughts? Any practical success with this strategy?
Also thank you all for what you’ve done on this sub, it’s beyond retarded and has helped me smile during some bad shit.
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July 22, 2021 at 04:52PM