>>>I’m hosting a special class at 6 PM ET today — get my top setup to watch this week that should be worth a cool $500 if everything goes as planned. Get the setup, learn how to execute it and more LIVE!<<<
Here’s something that trips up a lot of traders…
Thinking all spread widths are created equal. They’re not. The difference between trading $1 wide spreads risking $80 to make $20 versus $5 wide spreads risking $400 to make $100 isn’t just about bigger numbers.
It’s about fundamentally different capital requirements that can make or break your trading strategy — and your account if you’re not careful.
When I’m looking at potential spreads to enter, I see three distinct options: $5, $2.50 and $1 wide spreads. Each one serves a specific purpose depending on your account size and risk tolerance.
And here’s the thing — most traders pick the wrong width for their situation, and that’s playing with fire.
The Math That Changes Everything
Let’s break down what these numbers actually mean for your wallet. With $1 wide spreads targeting a 20-cent credit, you’re looking at manageable $80 risk per contract.
But when you step up to the $5 wide spreads targeting around a dollar credit, suddenly you need five times the capital commitment. And you can lose a lot more.
I know everyone wants to go for the biggest credit they can get, but you can’t be greedy when you have a small account.
This isn’t just academic theory — it’s real money management. Those $1 wide spreads allow you to manage your risk without betting the farm on single positions.
You can diversify across multiple setups and still sleep at night knowing that one misstep won’t blow up your account.
The $2.50 wide spreads targeting about 50 cents in credit sit right in the middle, giving you that sweet spot where your ROI stays in that 20% range regardless of which width you choose.
Strategic Positioning for Different Account Sizes
Here’s what I’ve learned from years of trading different spread widths: If you’re new to this or trading a smaller account, start with $1-wide spreads.
For those $5-wide spreads, your target should be around a dollar, give or take 10 cents either way — so there’s some flexibility there. The key is maintaining that consistent return ratio while matching your spread choice to your capital constraints.
You don’t want to skew the risk too far, like say taking a 75-cent credit on a $5-wide spread because you’re risking more to make less. Stick to your plan.
The beauty of this system is that whether you’re trading a $50 stock with $1-wide spreads or higher-priced names with wider spreads, the underlying risk-reward mathematics stay consistent.
You just need to pick the width that fits your account size and trading style.
The team at Lance Ippolito Trading
Lance doesn’t want the CCP spying on him, so you’ll never find him on TikTok. Same goes for other social media sites, which are filled with impersonators, scammers and crypto bros.
You can only find him on his personal YouTube Channel — smash that Subscribe button! https://www.youtube.com/@LanceIppolito
And in his private Telegram channel: https://t.me/+-gVwEIwGJhplMTgx
Important Note: No one from the team at Lance Ippolito Trading, New Money Crew or any of its associated brands will ever contact you directly on Telegram.
*This is for informational and educational purposes only. There is inherent risk in trading, so trade at your own risk.
P.S. I Just Opened the Door for You to Join the $500 Challenge
My new trade is up to 22 wins with 0 losses…
And I’ve turned it into a challenge to target around 500 bucks per week (on a $2k stake)!
**We develop tools and strategies to the best of our ability, but no one can guarantee the future. There is always a risk of loss when trading. Past performance is not indicative of future results. Stated results are from live published alerts between 8/5/25 and 10/26/25. The win rate has been 100% on the options with an average return of 26% over a 3 Day hold time.
