Hi Zonetrader. You never did start that thread on Options!. If...

Hi Zonetrader. You never did start that thread on Options!. If everyone I'm about to bore on Options could just skip this post ,I have a query I was hoping Zonetrader could comment on.

I've been p pouring over educational material the past few weeks tying to get educated in selling option premium. Some of the resources you recommended here have been great. The Tastytrade website is brilliant. I've subscribed to impliedvolatility.com.au. I'll get Hoadley's in due course.

I decided to do some simple vertical spreads as a starting point but can't find anything with reasonable risk/ reward on the ASX_for Bull Put Spreads I thought that the reasonable metric was to sell credits about 1/3 the width of the spread. But even on high IV stocks I'm finding pricing is about 10-15% the width. So making maybe 10 to 15 cents on a $1 wide spread doesn't seem worth it. And that's Put spreads. Forget about Call credit Spreads, they are even more tightly priced.

I thought selling options would be a viable strategy but I'm getting a bit discouraged.

Is it a feature of the asx market that pricing is poor? Do I just have to look harder for trades? Or do people just trade on these low margins and rely on a high win rate to make it profitable?

Would appreciate your thoughts as to how viable option credit spreads are on our market.