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REDDIT

The Case For $5-Wide Spreads

P
Sep 16, 2026 · 22:32

I do not try to outsmart the market and I really don’t believe that is possible. I simply trade what is in front of me with lots of small winners (85%) and a few small losers. Over time those wins have added up. One of the ways I do this is by simplifying trading using a consistent $5 spread width. This drastically reduces the amount of decisions I need to make. I'm trading 12 underlyings each week with a full time job so I have to be extremely time efficient (like 15 minutes trading per week). My process makes the important decisions before emotion enters the picture. Like most of you, I'm using pre-defined set up rules. I wanted to get your take on spread width. My standard starting point is a $5-wide Put Credit Spread, typically for underlyings between $50 to $500. Obviously, I scale up if needed in larger underlyings. Spread width has a significant impact on your maximum risk, buying power reduction, premium collected, position sizing, trade management, and ultimately your psychology as a trader. By standardizing the width of the spread, I remove another variable from the trading process, which makes my entire trading plan easier to understand and execute. **What about you, are you using a standard spread width, or are you varying trade by trade? Do you go narrower or wider?**