How Much Money Can You Make Trading Vertical Credit Spreads?

Are you ready to uncover the real scoop on how much you can make from trading credit spreads? Let’s dive into a no-nonsense discussion that cuts through the noise and gives you a clear picture of what you can expect. This isn’t about hype; it’s about setting the right expectations and helping you make informed decisions.

Setting Expectations

To begin, it’s crucial to emphasize that there are no guarantees in trading. The numbers discussed in this video are based on averages and historical data, but individual results may vary. It’s essential to understand that trading always carries risk, and losses are an inherent part of the process.

Win Rate and Monthly Returns

Many credit spread traders follow proven strategies that yield high win rates. A typical win rate can range from 90% to 93%, resulting in an annualized win rate of around 35%. This win rate significantly surpasses the average market return, which is around 10%.

Monthly Returns and Losses

On average, credit spread traders following a well-defined strategy can expect monthly returns of 5% to 10%. However, it’s important to note that not every month will be profitable. Losing months are also a reality, with potential losses ranging from 10% to 20%.

Account Size and Potential Returns

Let’s examine how different account sizes can influence potential returns. For instance, with a $1,000 account, you might expect to make around $50 to $100 during winning months. On losing months, losses could be approximately $200.

For a $10,000 account, the potential monthly profits increase to $500, while losses might be around $2,000 in unfavorable months. This illustrates the principle that as your account size grows, your potential returns and losses also increase proportionally.

Larger Account Sizes and Risk

Scaling up to a $100,000 account showcases the potential for more substantial returns. In this scenario, you could anticipate monthly profits of $5,000, while losses might amount to $20,000 during unfavorable months. While the potential gains are attractive, it’s essential to recognize that larger account sizes correspond to higher risks. Managing risk remains a crucial aspect of successful trading, regardless of the account size.

Conclusion and Further Help

Trading vertical credit spreads can indeed offer a source of income and financial growth. However, it’s imperative to approach this strategy with a clear understanding of both the rewards and the risks involved. The presented numbers are based on historical data and averages, and individual results may vary. Remember that successful trading requires careful planning, disciplined execution, and a continuous commitment to learning and adapting to market conditions.

If you’re interested in exploring a proven strategy for trading credit spreads, you can learn more about it through various resources. Just keep in mind that education and proper risk management are key factors in achieving sustainable success in the world of trading.

If you want to trade credit spreads profitably with a 90%+ win rate and consistently generate monthly income, then join the 10% Credit Spreads program!

Thanks for reading :)
Austin Bouley
CEO & Chief Strategy Officer