Credit Spread (options)

Credit Spread (options)

In finance, a credit spread, or net credit spread, involves a purchase of one option and a sale of another option in the same class and expiration but different strike prices. Investors receive a net credit for entering the position, and want the spreads to narrow or expire for profit. In contrast, an investor would have to pay to enter a debit spread.

Read more about Credit Spread (options):  Credit Spread Options, Breakeven, Maximum Potential, Analysis

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