SPDR S&P 500 (SPY)

[DowDeva]

If you sold a few credit spreads at slightly above/below 4 and 8 hour chart resistance you would be taking advantage of theta and be punting singles every week.

They add up over time.

I made $60 today barely looking at the trade. If /es had reached my short call I would have rolled it up a few points higher and still have done well. I often will use momentum indicators with deviation bands (and one other thing, I forgot, lol) to gauge how likely the short call/put spread will be touched or not.

One of the greatest traders I ever saw - he used to post all his trades on Tos - almost exclusively worked uneven butterflies and credit spreads and then tweaked them during the week. He used to own a company that sold trading books.

~d