[TheTank]

It is a good strategy (and an interesting product). The execution side might be complex for retail traders. Execution is particularly important because although you get a cheap structure (selling one leg, buying the other), you end up crossing the spread twice.

This sort of trade is usually done OTC or alternatively using a contingent algorithm (wait passively on one side for one leg, and fire the second leg automatically as the first leg is filled) which allows going from paying 2X spread to 0 - but the latter has the tradeoff of taking longer and potentially missing the opportunity.

I know they are sometimes called like this, but I find the naming "credit spread trading" confusing. Are these strategies different from collars? I traded credit in the past, and my immediate understanding of "credit spread trading" in this context is shorting bonds of Boeing and buying treasuries (or trading US rates) for example. It would also be a valid strategy in this case that would use credit and rates instrument as a vehicle rather than equity instruments, but not accessible to retail traders.