Debit and Credit Spreads: The Basics Explained
Debit and Credit VerticalsA spread combines two or more option positions in a one-to-one ratio, which sets a defined risk and reward before the trade is placed.
0:00 Introduction: What Are Spreads?
0:56 Defined Risk/Reward Nature
1:06 Debit Spreads Explained
1:23 Debit Spread Risk = Premium Paid
1:50 Debit Spread Example: 90/100 Call
2:18 Credit Spreads Explained
2:35 Credit Spread Risk/Reward Analysis
Register to view the complete Four Legs, One Position: How Condors and Butterflies Are Built webinar: https://bit.ly/4gmJCWo.
Recommended Videos
Debit Verticals
This rebroadcast of an OIC Simulcast talks all about options spreads. Specifically, this session will discuss debit verticals which involves the simultaneous sale and purchase of options that initially results in a debit.
Watch Now
Strike Selection for Debit Spreads
Learn about the mechanics of a debit spread, including strike selection for a Bull Call Spread and a Bear Put Spread.
Watch Now
Call Credit Spread Review
A call credit spread or bear call spread is a limited-risk, limited-reward strategy, consisting of one short call option. Review this strategy and see a practical example.
Watch Now
Put Credit Spread Example
A put credit spread or bull put spread is a limited-risk, limited-reward strategy, consisting of a short put option and a long put option with a lower strike. See an example in action.
Watch Now
Premium Income I: Credit Verticals
Watch Now