Corporate Bond Yields & Deep Out of the Money (OTM) Equity Put Options - The Relationship and How to Make Money from It!

Level 3 - Options Wizard Only

Now, you may be reading the title of this post and thinking to yourself, hmm, what do corporate bonds and stock options have to do with each other? After all, aren’t they two entirely separate financial instruments and asset classes? In fact, credit spreads derived from corporate bonds are a very interesting metric especially as economies are entering a downturn as a profitable trading indicator. Well, let’s dive in!