Our First Credit Spread Option Trade for 2007

The New Year is off to a good start!

Today saw our first credit spread option trade on the SPX close out for a .10 debit. The trade was opened on December 29th for a .60 credit, leaving us with a net .50.

The spread was 10 points wide, so the total amount at risk was 10 - .60 = 9.40. Our net return is .50 / 9.40 = 5.3%. Considering that this trade was open a mere 18 days, that's not bad.

So we're now up over 5% year-to-date on our SPX trades. Considering that we're still in January and that the S&P 500 averages about 8% per annum, we are well ahead of the game.

This was not an accident or just "good luck", because there was a high probability of this being a successful trade from the moment it was opened. Once the credit spread was in place, we just left it alone until we could close it out for a modest profit.

If you are not familiar with credit spreads, or stock options for that matter, be sure to enroll in our free options trading mini-course. That mini-course will:

• Introduce you to stock options;
• Reveal why options are so important for your financial future;
• Explain what comprises the value of a stock option;
• Let you in on the secret to profiting regardless of market direction;
  
• Show you what a credit spread is and how to trade it; and
  
• Demonstrate how to explode credit spread results!

Subscribe To Our Options Trading Mini-Course Now

Oh, and right now you'll also receive our 2007 Stock Options Education Report. That report documents precisely what you need to do to master stock options, so you will not fall prey to high priced seminar promoters...

Good trading!

Christopher Smith
TheOptionClub.com