Index Credit Spreads

1. Use index options.
2. Sell ( writes ) a far out of money index option.
3. Buy and index option that is 5, 10, or 15 points further out of money.
4. Make certain to get a credit of at least 0.45.
5. Enter such spreads with less than three weeks before expiration.
6.Set a stop-loss that is out of the money for the option you have written.
7. Set a stop-loss where there is an 85% chance of not touching the stop-loss.

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