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

Famous quotes containing the words credit and/or spread:

    The solar system has no anxiety about its reputation, and the credit of truth and honesty is as safe; nor have I any fear that a skeptical bias can be given by leaning hard on the sides of fate, of practical power, or of trade, which the doctrine of Faith cannot down-weigh.
    Ralph Waldo Emerson (1803–1882)

    A little quaker, the whole body of him trembling,
    His absurd whiskers sticking out like a cartoon-mouse,
    His feet like small leaves,
    Little lizard-feet,
    Whitish and spread wide when he tried to struggle away,
    Theodore Roethke (1908–1963)