Steal My 7-Step Credit Spread Blueprint (Exact Entries & Exits)

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Want a simple & complete trading plan for trading Credit Spread safely & profitably?
Then use this Simple 7-Step Credit Spread Trading Plan that I share in this video where I show you exactly how to enter into a trade, and exactly how to exit your trades.
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#creditspreads #bullputspread #bearcallspread
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[@optionswithdavis]

Get Your Copy of My Strategy Blueprints For FREE: 1) The Options Income Blueprint: optionswithdavis.com/blueprint/ 2) The Credit Spreads Blueprint: optionswithdavis.com/cs-blueprint/

[@chessychesster2107]

Amazing, amazing, amazing video Davis! It's very well explained and I really needed to watch this. Please create one for the iron condor too! Thank you!!

[@optionswithdavis]

You're welcome 👍

[@TinkerToFIRE]

Thanks for the video Davis. This really is a great strategy that works very well with with people who understand trading technicals. I replaced my stock swing trading with credit spreads. I am having success with 55% targets and 21 DTE exits. The only real bad marks on my P/L is when I break my rules and hold past 21DTE hoping for a bounce that doesn't come, which I have corrected. Mitigation really is powerful.

[@optionswithdavis]

You're welcome and thanks for sharing 👍

[@jakebergman6543]

What technical indicators do you use?

[@cryptocomplete]

Thanks for the video. This is the first time that I have really paid attention to the execution price and now you helped me understand that a little better.

[@optionswithdavis]

You're welcome 👍

[@michaelmickle9321]

Davis always look forward to your videos. They are to the point, clear and precise. You’re the Master!

[@optionswithdavis]

Thanks ☺️

[@freddrake2825]

This was a very clear explanation of the seven steps. I appreciate that.

[@optionswithdavis]

Thanks ☺️

[@kgriffen123]

Wow, and actual helpful video that gives you meaningful actionable information with very little sales fluff. Thank you for this!

[@optionswithdavis]

You're welcome 👍

[@RobOToole1]

Another great video. Thanks for all the insightful content. Now just need to stick to the rules and not let emotions and boredom get in the way! Let the probabilities play out and take the profits the market gives you.

[@optionswithdavis]

You're welcome 👍

[@Feroxious1982]

Thank you for your video, it's enlightening me and seeing things that I have never seen in the world of Options trading before. May the Options favour you 😊

[@optionswithdavis]

You're welcome 👍

[@BarryFence]

Another great video, Davis! I've been binge-watching them for days.

[@optionswithdavis]

Thanks ☺️

[@filmorder8437]

thanks for your videos and I learnt a lot from using spreads. it is great to use the indicators to identify overbought or oversold conditions, but how much do you factor in market sentiment and the valuations of the companies? for instance those tech stocks which are very overvalued right now and you have a bearish view for the next 2 months but the trade set ups are right for a bull put spread. Do you simply trust your rules and make the trade or don't take the trade until your view/sentiments are more aligned with the rules

[@stanmanmedia]

Outstanding!! Very logical the position that you had on each talking point. Thanks very much!!!

[@optionswithdavis]

You're welcome ☺️

[@dennis6789]

Thank you for the video. Your explanation is the best I have watched. I have watched a lot.

[@optionswithdavis]

You're welcome 👍

[@TBradFashionModel]

Great specifics, and chart demonstration placement.

[@optionswithdavis]

☺️

[@ufogovernment6039]

comprehensive explanation. great job as usual.

[@stanleyfacx6304]

Hey Davis! Great video as always :D Ive been watching your videos for a long time now and it has been very insightful. I believe many of us are curious about your options portfolio, perhaps a video about your portfolio in the future?

[@optionswithdavis]

Sure, will consider creating a video on this, thanks for the suggestion 👍 And appreciate your support all this time ☺️

[@MKyaing]

Perfect with great explanation

[@optionswithdavis]

😊

[@shaunglendinning]

Appreciated Davis. Kind regards.

[@apip6387]

Like your videos.. I like how you cover the whole strategy from entry to exit with all stats. I would like to know if you share your P/L anywhere? The theory is good, but it would be nice to see actual numbers.

[@optionswithdavis]

Yup, it's scattered around my various videos: kzbin.info/aero/PLn4dMDRu5KCC3gmTgBpai9vhlUy5qOLjX&si=o1cjSS-It7Y8Dj4D

[@ghost9pm407]

This video was fantastic. No puff or filler. Straight to the process and very informative. Just subbed and I'm looking forward to watching more.

[@JackieD5753]

Excellent video Davis. Thank you for answering our questions.❤ 😊

[@optionswithdavis]

You're welcome 👍

[@nizarladak4553]

@ Davis: As usual, excellent presentation. Very well explained.

[@optionswithdavis]

Thanks ☺️

[@neevsepicbrawlstarsvideos8863]

Excellent video Davis, very informative ❤

[@optionswithdavis]

Thanks ☺️

[@MotoAngler]

Awesome video combining TK and TT theories. However, would it be wrong if I would follow TK's theory and having my Max Risk equivalent to 2X stop loss instead of Max Loss? Provided I manage my exit to 3X Stop loss

[@saimiride]

thanks for your fantastic work, how do you manage your account, for instance: if you have 100k you can risk 5% of your capital for one trade but how many trades do you make at the same time ? so how much money do you keep in cash ? thank you so much if you could answer this question. I cannot find anybody who talks about this topic in options

[@pkdv8324]

Wow man you are the best! Quick question about IVR do you prefer ETFs/Stocks with higher IVR so that over time the IVR can drop for the credit spread you selected?

[@ralphbisel9503]

Great video, thanks for sharing.😎😎

[@optionswithdavis]

You're welcome 👍

[@SanjayJain-rg3jo]

Great video. How trade would go if one adjustment is done if underlying starts moving in un-favourable direction?

[@optionswithdavis]

Watch these two videos: 1) kzbin.info/www/bejne/kIXTk4J9md-omLcsi=KHB5byfsPtNaO7SQ 2) kzbin.info/www/bejne/Y4fWhJilqcxgpLMsi=jWhdPZDMdcyLmMVD

[@fishphage2762]

Thanks Davis for letting us steal your 7-steps. 😂 may I enquire when we take 50percent profit on a bull put spread, what should we do next if we still have a bullish view on the underlying? I find that if I were to sell another BPS, the premium is less due to lower IV.

[@divamisi24]

Consider buying a call to play the upside..

[@optionswithdavis]

A few options. You can continue to let it run instead of taking profit, or wait till the market retraces before entering again. If you have more than 2 put spreads, you can take profit on one and let the other run.

[@C00ltronix]

IMHO I would close and do a new one one cycle out with adjusted strikes.

[@ChaplainDaveSparks]

I agree on widening the width of a credit spread, rather than selling more contracts, but … Too often, the strike that is further out has a wide bid/ask spread.

[@optionswithdavis]

This depends on the options liquidity of the underlying. If it has a wide bid/ask spread then you may want to avoid trading that underlying.

[@ron403b]

Thanks, helpful. This is the first time I have heard of putting a stop loss on an options trade. If it works the same as a stop loss on a stock you get sold at the designated price with no extra fee. Why not set a stop loss at the price you want to exit and get sold at that price without having the cost of buying the protective put or call?

[@optionswithdavis]

You're welcome 👍 Generally stop losses have shown to deteriorate long-term performance. But if your own empirical studies have shown that you get a better performance for using a stop loss compared to exiting at expiration or 21 dte, then why not. Ultimately, u decide what you want to do.

[@cryptocomplete]

Another consideration regarding a stop-loss: A risk of using a stop-loss order is that it may be triggered by a temporary price fluctuation in the stock price, causing your position to be closed unnecessarily. For example, if a security's price drops suddenly and then quickly recovers. You position might get closed before you really want it to. The protective Put in this spread does not have that stop-loss drawback. Also, if the stock price drop is DRAMATIC (and stays down), then the stop loss may not be able to be executed until the price is well below where the protective Put strike price would have limited your loss better. Again, in this case, the protective Put part of the spread would have been a better choice.

[@optionswithdavis]

That's right, well explained 👍

[@hl.4896]

Hi Davis, thanks for this video. Assuming a $10,000 account and risk of 5%. How many trade(s) do you recommend? or keep the 95% capital in cash?

[@optionswithdavis]

Mentioned in question 4 of this video: kzbin.info/www/bejne/Y5iYnn-Ndr-nqqssi=cKweWx8_DAW72fxZ

[@SanjayJain11]

Good explaination

[@optionswithdavis]

Thanks ☺️

[@mmoosa61]

Thanks!

[@optionswithdavis]

You're welcome and appreciate the support!

[@jasonrich2090]

Hi Davis .Which is more safer and profitable bull put spread or buy call option ? Thanks

[@optionswithdavis]

It would be an uphill battle fighting theta decay with a call option. So unless you're really good at timing the market and having the market go up quickly the moment you buy the call option, I'd prefer the bull put spread.

[@waynezhou8667]

Hi Davis, does 21 DTE also apply to covered call?

[@junwangrx]

thank you for sharing i subbed

[@optionswithdavis]

You're welcome 👍

[@MaxF88]

Nice! What if exit bull put spread if the support breaks and overall market sentiment turns bearish? No need to wait and hope for recovery or even take max loss. Comment?

[@optionswithdavis]

Thanks ☺️ If based on your own empirical studies you're certain that the market will definitely go down after the support breaks and it will improve your long-term performance compared to exiting at 21 dte then yes you can do that.

[@MaxF88]

Just thinking if I enter based on TA, can also exit based on TA. Can always re-enter the position when the coast is clear so to speak 😅 How this is going to work long term, let's see. Need more occurrences.

[@biyiakala1850]

What timeframe on your charts are you looking at rsi? Daily?

[@optionswithdavis]

It's stochastic oscillator: kzbin.info/www/bejne/rabFhKenqddlbdEsi=pKsR63aalMig9TsL

[@kcirrred9923]

For this strategy over the long term isn't the overall expectancy isn't it negative? Risk to reward vs win rate.?

[@AP_123_]

You're an excellent teach and mentor, Davis. Do you offer mentorship? Thanks, I subscribed to your channel and email list. Also downloaded the guide.

[@optionswithdavis]

In the works and will be announcing it very shortly. Details will be sent to my email list once it's ready. And thanks for the support, appreciate it ☺️

[@AP_123_]

@@optionswithdavis Thank you for your guidance. I am binge watching your Playlist right now ☺️ Excited for the mentorship ‼️ I will be first in line 📈

[@optionswithdavis]

👍

[@tomallison4103]

I lied, one more quick question. Do you tend to give more weight to the anticipated range, or the Delta? For examle, your 25-Delta strike is below the current support, but it is within the anticpated range (and actually by a decent margin). Do you push the strike outside the anticipated margin, or go by the Delta calculation? Again, thank you to anyone who wants to share their thoughts!!! :-)

[@C00ltronix]

Oh no, another one arguing about stop-loss! Firstly, love the clarity about your video! Good entry logic! But sometimes positions go against you from the start. Why not set a mental stop-loss at let's say $50? Then get out and move on.

[@chimchu3232]

Is there any problem with only doing a width of $1? I have a small account, and i really only want to risk $100 on any single trade

[@optionswithdavis]

Will likely do a video comparing tight vs wide spread widths and the advantages & disadvantages of both so you can decide which is better for you. For now, watch this: kzbin.info/www/bejne/m6mniIB7prd5d9Esi=Iah6kNWXPgqwir5M

[@tomallison4103]

Love your content, Davis! I have a silly question for you. I'm looking at a setup today that looks really good, (resistance, stochastic, expected range), but the premium for the spread ($5.00 spread, 54 days out), is only about $0.80. I believe that, according to what I've seen in your vids, that is lower that what you like to go. As a general rule, will you consider a trade in these circumstances, or is your premium rule hard-and-fast? If you aren't hear to answer, I'd love to hear what some of the others think. Thanks!

[@Ratbeeitch]

Many times when you place your spread below/above, support and resistance levels, the risk/reward is not worth the trade.

[@guyredares]

the thing is how you habdle losers, the rest is easy