A debit spread is an options strategy that involves the purchase and sale of the same class of options with the same expiration date but different strike prices. Right now, this may sound confusing, ...

What Are Vertical Debit Spreads? And Why Use Them? Besides answering these questions, this article will also help you understand why you should use a spread instead of a call or put. This article will ...

Explore how to buy option spreads. This approach reduces risk by selling a less expensive option and buying another, aiming ...

Table of Contents What are vertical spreads? What are credit and debit spreads? How to calculate the max value and max risk of a vertical spread Real-Life Example of a Credit and Debit Spread: Adobe ...

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The term ‘spread’ can have several different interpretations depending on where it is used in the financial space. A spread is often used to refer to the difference in bid and ask prices on an ...

Buying calls and puts can increase your portfolio’s returns. But if you have traded enough options, you have likely seen a call or put lose significant value in a short amount of time. Debit and ...

Bull call spreads involve buying and selling call options at different strike prices. This strategy caps potential losses to the net debit paid while also capping gains. Used by investors expecting ...