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, ...

A debit spread is an options strategy that involves the purchase and sale of the same class of options A debit spread is an options strategy that involves the purchase and sale of the same class of ...

Trading options can be a complicated process as a lot of options strategies are available and traders need to evaluate all of the possible routes ahead of executing a trade. As such, Schaeffer's are ...

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 ...

For example, if you have a 100/90 vertical spread, the max value is $1,000. To calculate the max risk (or cost) of a vertical spread, you simply subtract the premium (price) of your long option from ...

Credit and debit spreads are foundational strategies in options trading. Credit spreads generate a net receipt upfront and can be used in a variety of market conditions. Debit spreads, on the other ...

Using SQ as an example, we can see how option spreads might be used to reduce capital outlay and potentially improve the probability of profits (versus buying outright calls or puts). We will also ...

Bear put spreads limit loss to net debit, capping maximum at difference between two puts. This strategy suits investors expecting a slight stock/index drop due to specific events. Profit potential is ...

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, ...