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Option Strategy For Small Trading Accounts
Episode 1519th October 2020 • Stock Market Options Trading • Eric O'Rourke
00:00:00 00:12:06

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Have a small trading account but thinking about trading options?

You're in luck as this episode shows how trading TLT bull call spreads the past 5 years made over 600% and is perfect for small trading accounts. 

The bull call spread strategy discussed here is also known as an in out debit spread. An in out debit spread is a vertical spread where the option you buy is in the money and the option you sell is out of the money. In out debit spreads are great for beginners with small trading accounts who want to get directional but not have to pay as much to get in a trade.

This episode includes a 5 year backtest of TLT buying in out debit spreads with about 30 days to expiration only if the 21 day exponential moving average is above the 50 day simple moving average. The exit parameters have a target of a 25% gain or a time stop loss of closing the trade about 3 weeks later, whichever comes first.

The backtest software shown in this video for in out debit spreads is CML Trade Machine Pro.

Here's the link:

www.OptionsTrading.Help/CML

Thanks for listening.

J. Eric O'Rourke

www.OptionsTrading.Help/Services

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