Which strategy is better: credit spreads or wheel options trading?

Asked 4 years ago

Personally, I'm a fan of credit spreads. But it might also be because I am more familiar with them. How about you? Which trading strategy do you think is better and why?

Wheel option strategy Credit spread Trading strategies

Andia Rispah Igobwa

Tuesday, August 10, 2021

"Wheel" options trading is a strategy in which you buy a call option with one underlying asset and sell two or more call options with other underlying assets. 
﻿Wheel Options Trading is better because it can make you money from two or more options. 
In contrast, credit spreads only have the possibility of making you money from one. But be aware that when your goals are profit, then wheeling is not typically done for protection or defense purposes - even if this might be technically what your original goal was.
Credit Spreads will always be net-zero -- no matter how many times the spread operates over time because they're meant to cost less than they make by allowing you to hedge against multiple positions at a time. 