Today I was looking for a way to get some negative deltas, with the market in a hard down trend. I put orders in this morning which filled as follows:
FE Bear Call Spread, 55/50 @ 1.55
- Stop at 51.00
ORB Bear Call Spread, 20/17.5 @.80
- Stop at 18.20
Both are in a nice down trend, and both gave me risk/reward of greater than 2:1. That is my minimum for a vertical credit spread. You'll notice that I also have stop... always. If these prices get hit I get out. I don't like to use a contigent order, since the spreads are sometimes too wide, so I usually use an alert that tells me when the stop is hit, then I get our manually and work the spread a little. We'll see how they play out.
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