drierp

Apple Credit Spreads: Targeting 500% Return

First off, this is more accurately called a vertical spread. and yes, it's of the debit variety.

Secondly, while this sounds all great, you're neglecting to point out that you're paying record high levels for AAPL volatility, and this current spread with only 2 contracts costs ~3 dollars per day to own at current levels. As the overall market volatility drops, AAPLs will likely do the same, lowering your profit without a move in Apple..

Not to say that this is a good or bad idea, just that options add about 4 dimensions to trading that most "everyday finance" type readers aren't ready for.

e.g. Had you instead bought just 1 of the 155s for $684 (less money in), it would be worth $1040 now.. a 52% return vs the ~40% you have now... Delta, Theta, Gamma, Vega all add up.. and it's dangerous to play without accounting for them all..