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What is a Credit Spread?

A credit spread is when you sell two options at the same time, which yields a net credit (positive cash) into your account. The moment you execute the trade, you receive this positive cash. Most credit spreads are monthly, which means you execute them and wait for one month before the trade is closed out. MMT specializes in WEEKLY credit spreads, in which your investment is tied up for one week or less. So, you can execute four or more weekly credit spreads in the same time period of one monthly credit spread.


Benefits of Credit Spreads

  • Great next step from the Covered Calls strategy

  • Good strategy for investors with a smaller account size

  • Allows the investor to take advantage of passing time without having to choose a direction on the underlying stock

  • Versatility — takes advantage of market volatility

  • Limits risk by foregoing a limited amount of profit potential

  • MMT's rules-based approach has a proven track record of success

Comprehensive Training

MMT is a global market leader in investment education services. MMT will teach you how to successfully execute a Credit Spreads strategy and how to:

  • Select the options suitable for Credit Spreads

  • Create Credit Spread orders in your brokerage account

  • Monitor the Credit Spreads and execute management techniques

  • Consistently generate income while focusing on capital preservation


MMT offers a 2-day seminar that provides a comprehensive overview of Credit Spreads. This seminar will teach you how to:

  • Successfully complete effective Credit Spread transactions

  • Select optimal choices for credit spread transactions in the US markets

  • Select the correct option strike price and expiration

  • Search the entire US market in an instant for the highest yielding Credit Spread opportunities

  • Consistently generate income in a volatile market

Expert Guidance and Advice

In addition to the Credit Spreads seminars, MMT offers:

Credit Spread Coaching Service

Attend weekly webinars and follow MMT instructors as they invest in Credit Spreads using their own money.

Learn More

Credit Spreads – Instant Cash Into Your Account

By definition, a credit spread transaction results in a net positive cash flow into your account the moment the transaction is entered. That’s why it’s called a “credit” spread. Credit spreads can be a useful risk management tool for options traders. When you trade a credit spread, you're swapping a limited amount of profit potential for the opportunity to limit risk.

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