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Hi everybody and welcome to this article on credit spreads. In this class today we will be discussing the importance of adjustments and what can happen to you if you do not know how to properly manage your option positions. One of the most popular option spreads on the market is called a credit spread, and we will be looking at this particular spread today. Some people consider this to be a high probability type of trade but until you actually work with this strategy, you may not know or understand the risk involved. An options credit spread can be particularly risky if it is traded alone, meaning that it is not being hedged by any other option position.

Because the Iron Condor is a negative Vega strategy, this may be the perfect time to use this income option spread. Now that the volatility has been going down and the markets have become a calmer place to be, this makes it much easier to manage this option strategy.