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Michael's avatar

Hey Greg,

I’m a 21 year old trader/investor and I have been options trading since I was 18 years old now, and I’m looking for more methods to make consistent profits. I was wondering if you ever run short term out of the money Put Credit Spreads on SPY. It sounds like a really good idea in my head, but I’m sure I’m looking over something. The play would go like this, Long SPY 344P / Short SPY 345P for a .01 credit. These options are over 20% out of the money and fairly liquid. If one was to do this a couple times a week with DTE 1-2 days out would you not make “guaranteed” returns?? (Market crash aside) Even through a correction SPY historically doesn’t correct more than 8% in a matter of a couple days. Also, from what I understand, SPY has 3 contracts expiring every week, if you ran this on each contract you’d earn 3% return weekly. I have a feeling I’m missing something here, I’m just not sure what…

Thanks for your time,

Michael

P.S. I watch your videos daily, and love your message! Keep up the great work and God bless!

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