How I Trade Options with Vertical Spreads
High-probability systems. Built to be repeatable.
This publication is where I share my work with two focused systems built around options strategies.
The focus is on repeatable setups — ones that can be structured, tested, and improved over time.
I don’t claim to have the perfect answer — just two methods I keep refining and using week after week.
All trades — wins and losses — go into my Trade Log as they are, with nothing smoothed over.
What I Track
The foundation of my trading work revolves around three key reversal candlestick patterns:
I use TC2000 to scan for these signals daily. Scanning is only the first filter — I manually review every result to confirm the price action visually. Only meaningful setups make it into the shortlist.
Sometimes, these become observations or hypotheses worth sharing on their own. Those go in the publication as well.
Strategy #1
10-Delta Credit Spread
If a ticker from the shortlist confirms a reversal, I apply a directional credit spread with a strong focus on the probability of success.
👉👉👉 The 10-delta logic, unpacked 👈👈👈
Here’s how it works in practice:
I open a Bear Call Credit Spread when the price moves higher and forms one of the three reversal patterns.
The short leg (the call I sell) is always selected based on ~10 delta.
The long leg is a further out-of-the-money call to cap the risk.
Expiration is chosen within a 45-day window.
Why 10-delta?
Delta approximates the probability of an option expiring in the money.
A 0.10 delta call has roughly a 10% chance of being in-the-money by expiration — which means a 90% chance of keeping the premium.
That’s the core logic here. I don’t try to predict — I wait for the market to flash a reversal pattern, then sell risk far above the current price where continuation becomes unlikely.
It’s not about maximizing gains.
It’s about stacking high-probability trades with defined risk.
Even a 12–15% risk/reward ratio is acceptable here — because the focus is consistency and edge, not outlier profits.
Each candidate goes into my Google Sheets model, where I compare expirations, strikes, risk/reward, max risk, and expected premium.
If the setup is favorable, I take the trade — and publish it under Tactical Spreads, along with chart, breakdown, and OptionStrat link.
Strategy #2
QQQ Weekly Put Spread
This is a separate system, independent from any patterns.
Every Friday, I sell a Put Credit Spread on QQQ — a liquid and predictable index ETF.
Here’s the simple structure:
Sell a PUT that gives me ~$0.55–0.60 premium
Buy a PUT 25 points lower for ~$0.05
Entry: Friday
Expiration: Next Friday
Net premium: ~$0.50 → Target: $500 per week
Why it works
Markets rise or move sideways more often than they crash.
QQQ rarely drops sharply within a week.
So I take that premise — and sell a spread with downside buffer and premium cushion.
The logic is not prediction — it's mechanical repetition.
Same action. Same day. Defined risk.
If QQQ drops below the short strike and the spread moves ITM, I enter the protection phase:
Buy a long-dated QQQ CALL (~6 month from current date)
Sell short-term weekly CALLs against it until recovery
This allows me to reduce drawdown and potentially earn even in bad scenarios.
All trades are shared under the QQQ Weekly Trades section.
Who This Blog Is For
Traders looking for structured, repeatable options strategies
Chart analysts who want to turn price action into risk-defined trades
Anyone tired of hype, forecasts, and theatrics — and ready to see real setups, real numbers, and real assumptions
Frequently Asked Questions
▶ Do you take every signal that fits the pattern?
No. The pattern is just the beginning. I manually filter all candidates and only act when structure, momentum, and context align. Some days, there are zero trades — and that’s perfectly fine.
▶ How do you manage overlapping trades?
I keep it simple: only one active trade per strategy at a time. This avoids dilution of focus and helps stay disciplined. If I’m already in a QQQ position, I wait for it to resolve before entering the next.
▶ How do you decide when to exit a spread early?
If a credit spread has captured most of its premium (usually 70–90%) and the chart no longer supports staying in, I’ll close it. There’s no ego in holding — only math.
▶ What’s your approach to losing trades?
They happen. I focus on process over outcome. Every loss is reviewed: Was the pattern valid? Was the entry too late? Did I ignore price action? I log every trade and adjust accordingly — but never chase or double down emotionally.
▶ Why do you publish real trades publicly?
Because I believe in transparency. This blog isn’t a signal service or performance flex — it’s a public notebook. Sharing real trades, with all the imperfections, helps sharpen thinking and invites useful feedback.
▶ What tools do you use to trade and track your work?
I use a focused stack of platforms for screening, planning, and execution. You can view the full list here: Trading Stack
Disclaimer
All content is for informational purposes only and does not constitute financial advice.Any trades or strategies should be tested in a simulated environment before use.Trading involves risk, and all decisions are the sole responsibility of the reader.