Most options traders start the same way. They buy call or put options…and hope the stock makes a big move fast enough to win.
But there is a problem: time decays.
Even if it is in the right direction, your trade can still lose money if the move is not strong enough or does not happen quickly.
That’s where credit spreads come in.
In this recent explainer video, options expert Rick Orford describes two ways to express the same market view:
There is a lot of growth potential with this type of premium options buying strategy… but there is also a lot of timing dependence.
The stock has to move far enough, fast enough, to overcome the impact of time decay on the option premium.
To create a credit spread, the same type of option would be purchased with a deeper out-of-the-money strike, which limits risk.
Now, instead of needing a big move… You just need the action to stay on the right side of your short move.
With credit spreads:
For example:
This changes your prediction advantage → probability
Instead of searching for setups manually, you can use bar chart tools to filter out high probability trades.
With the options evaluator, you can:
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Scan Bullish and Bearish Bid Spreads
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Filter by days until expiration (30 to 45 days)
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Analyze the probability of profits.
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Compare maximum risk to reward
You can also use:
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Bar chart opinion → confirm trend direction
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Trader Cheat Sheet → Time Entries and Exits
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Options Dashboard → Evaluate Volume and Sentiment
Long options can generate big profits. But they require precision and timing.
Credit spreads offer a different approach:
And for many traders, that’s the difference between guessing… and building a repeatable strategy.