Debit and Credit Spreads: The Basics Explained

A 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

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