This quick reference provides an overview of how SPX credit spread trades are structured and entered, particularly those used in the 11-Hour Options strategy.
It covers the basic trade components, strike prices, expiration dates, and recommended premiums. For detailed instructions on placing trades through your specific trading platform, please refer to the platform-specific help articles or resources provided by your brokerage.
Training Resources
Base Camp Trading provides additional training through on-demand workshops, live trading rooms, and advisory services, depending on your membership or subscription.
Platinum Club and Income Club Platinum Members
Depending on your membership, you may have access to the following resources:
- Setting Up Your Trades Workshop: Instructions on placing trades.
- Setting Up Your Charts Workshop: Guidance on configuring charts and indicators.
- Live Trading Rooms: Follow along with the trading mentors as they analyze markets, discuss strategies, and place and manage trades in real time.
- After the Bell Training: Live training sessions held on Mondays and Wednesdays.
These resources are accessible through your Base Camp Trading Dashboard, according to your membership benefits.
11-Hour Options Workshop
The 11-Hour Options Workshop provides detailed training on the strategy, including trade setup and risk management.
The Bonus Section, located at the bottom of the workshop, includes instructions on setting up and placing credit spread trades.
Access the 11-Hour Options Workshop Bonus Section
11-Hour Options Alert Service (MIST)
MIST subscribers have access to the 11-Hour Options Workshop, MIST Intensive recordings, and trade alerts through the Advisory Services > MIST section of their dashboard.
These resources provide additional guidance on trade entry, strategy execution, and risk management.
Understanding Credit Spread Trades
The 11-Hour Options strategy primarily uses SPX vertical credit spreads, which consist of two option contracts of the same type (calls or puts) with different strike prices and the same expiration date.
One option is sold, and another is purchased, resulting in a net credit (premium received) when opening the position.
There are two primary types of credit spreads:
Bear Call Credit Spread (Bearish)
A bear call credit spread is used when anticipating that SPX will remain below a particular price level or move lower.
- Sell a call option at the lower strike price.
- Buy a call option at the higher strike price.
- The spread is placed above the anticipated market movement.
The maximum profit is achieved if SPX remains at or below the short (sold) call strike through expiration.
Bull Put Credit Spread (Bullish)
A bull put credit spread is used when anticipating that SPX will remain above a particular price level or move higher.
- Sell a put option at the higher strike price.
- Buy a put option at the lower strike price.
- The spread is placed below the anticipated market movement.
The maximum profit is achieved if SPX remains at or above the short (sold) put strike through expiration.
Important: Both types of credit spreads have defined maximum potential profits and losses. The goal is for SPX to remain on the favorable side of the short strike, allowing the trader to retain the premium collected.
Example: 11-Hour Options Credit Spread Trade
Consider the following example from an actual 11-Hour Options trade alert:
Trade Issued: August 18, 2026
Underlying: SPX
Strategy: Bear Call Credit Spread
Expiration: August 19, 2026
Recommended Premium: $0.20–$0.25 net credit
Trade Alert Instructions:
SPX bear call credit, sell 7775 calls, buy 7780 calls, premium = 0.20–0.25
This is a $5-wide vertical credit spread consisting of two option legs.
Leg 1: Sell to Open
- Symbol: SPX
- Action: Sell to Open
- Option Type: Call
- Strike Price: 7775
- Expiration: August 19, 2026
Leg 2: Buy to Open
- Symbol: SPX
- Action: Buy to Open
- Option Type: Call
- Strike Price: 7780
- Expiration: August 19, 2026
Both legs are typically entered together as a single vertical credit spread order.
Understanding the Recommended Premium
The recommended net credit for this example is $0.20–$0.25, equivalent to $20–$25 per spread using the standard SPX options multiplier of 100.
The recommended premium range is an important part of the strategy:
- Below the recommended range: The premium received may not provide sufficient profit potential.
- Above the recommended range: The higher premium may indicate increased risk, particularly if the selected strike prices are closer to the current SPX price.
If you cannot obtain an acceptable combination of strike prices and premium within the recommended range, it may be better to skip the trade rather than force an entry.
Understanding Maximum Profit and Loss
For a $5-wide credit spread receiving a $0.20 premium:
Maximum Potential Profit:
$0.20 × 100 = $20 per spread
Maximum Potential Loss:
($5.00 − $0.20) × 100 = $480 per spread
The maximum potential loss displayed by your brokerage represents the defined risk of the position, not the intended loss when following the strategy's risk management techniques.
The 11-Hour Options strategy emphasizes managing losing trades before they reach their maximum potential loss. As taught in the training, the objective is generally to limit losses to approximately 2–3 times the premium collected through defensive techniques and exit rules.
For example, with a $0.20 credit ($20 received), a loss of 2–3 times the premium would be approximately $40–$60 per spread. This would correspond to closing the spread for a debit of approximately $0.60–$0.80, assuming an available fill at those prices.
However, stop-loss orders and defensive techniques cannot guarantee a specific exit price or maximum realized loss. Rapid market movements, overnight gaps, and execution conditions can result in larger losses, potentially up to the spread's defined maximum risk.
Quick Reference: Entering a Credit Spread
Although order entry screens vary by brokerage and trading platform, the essential trade details remain the same.
When entering an 11-Hour Options credit spread, verify the following:
| Trade Detail | What to Check |
|---|---|
| Underlying | SPX |
| Strategy | Vertical Credit Spread |
| Option Type | Calls for a bear call spread; puts for a bull put spread |
| Sell Leg | Correct strike price and expiration |
| Buy Leg | Correct strike price and expiration |
| Expiration | Typically the next trading day for 11-Hour Options trades |
| Quantity | Number of spreads being traded |
| Net Credit | Within the recommended premium range |
Order Type: A limit order allows you to specify the minimum acceptable net credit. Market orders do not guarantee the premium received and may result in unfavorable fills, particularly when option prices are moving quickly.
Always review the complete order details before submitting a trade.
Example: thinkorswim Order Entry
This example illustrates how the option legs, expiration date, and net credit may appear on thinkorswim.
Other trading platforms may display the information differently, but the same essential trade details apply.
Additional Assistance
For more detailed training on credit spread trade selection, entry, defensive adjustments, and risk management, refer to the 11-Hour Options Workshop and MIST Intensive recordings, if included with your subscription.
For assistance with navigating your specific trading platform or entering a multi-leg options order, we recommend consulting your brokerage or trading platform provider.
Your broker is the best resource for platform-specific instructions and can help explain how to place and manage credit spread orders using its system.
Important: Options trading involves risk. Although credit spreads have defined maximum potential losses, risk management techniques do not eliminate the possibility of substantial losses. Always understand the trade structure and potential risk before entering a position.
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