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 ...

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 ...

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, let’s break down the put ...

To initiate a credit spread, you would do the opposite — buy an option further from the money while selling another option closer to the money. You can make both bullish and bearish bets with debit ...

Yesterday's Deep ITM (In The Money) Debit Spread has produced some great questions from subscribers. Here is a Q&A that I thought might be helpful to everyone. Enjoy! Q: How does this trade sell ...

A “spread” is a position consisting of both long (purchased) and short (sold) options of the same type (i.e., put or call). The options may have different exercise prices and exercise dates. The basic ...

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 ...