Credit Spreads

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How to Generate Income With Ethereum Credit Spreads

Most Ethereum options income strategies focus on covered calls or cash-secured puts. However, investors who want defined risk and lower capital requirements often use credit spreads instead.

Credit spreads are among the most popular options strategies in traditional financial markets because they allow traders to collect option premium while strictly limiting potential losses.

In this guide, we'll explain how Ethereum credit spreads work, why traders use them, and how they compare to other options income strategies.

What Is an Ethereum Credit Spread?

A credit spread is an…

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Ethereum Credit Spread Example: Our First Profitable Options Trade

On August 24, 2023, just two days after launching Terramatris, we closed our first profitable Ethereum options trade.

The trade generated only $5.38 in premium income, but the dollar amount was never the important part. What mattered was validating the process: identifying an opportunity, managing risk, collecting premium, and closing the trade successfully.

If you are unfamiliar with credit spreads, start with our guide: How to Generate Income With Ethereum Credit Spreads.

Why We Chose a Credit Spread

At the time, our objective was not to make a large directional bet on…

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