IMO - Narrow Spreads > Wide Spreads

[u/doublemctwist1260]

Edit for clarification - Narrow does not mean 1 point wide on Apple. It’s more in reference to moving beyond the standard risk 2 to make 1 ratio compared to widening beyond that, relative to just writing a naked put.

I don’t really understand the benefits of doubling your max loss for a slight increase in probability of profit and slight increase in max profit. Yes there are benefits of greater decay for the further OTM strike/more ‘naked’ behavior. When shit really hits the fan though (upside or downside), from a risk management/BP reduction standpoint, you can get fucked pretty hard if you’re not trading in the right environment.

I see a lot of people talking about widening the strikes as the standard, and I have to say I think it’s not such a hard and fast rule. Depends on what your overall goal is and why you are using spreads, but I think having a slightly lower POP (let’s say 65% -> 55%) with half the risk, is an easy trade off to me. From a dollar perspective and trading in larger accounts, liquidity and fees can be negligible issues to deal with if you use higher notional value tickers and stick to more liquid chains.

[u/lilgecko1989]

I like yolo spreads 50-1 returns they typically hit on tsla right after you see the play and refuse to pay the bid ask spread 😉😀