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:
“If you love those who love you, what credit is that to you? For even sinners love those who love them.”
—Bible: New Testament, Luke 6:32.
“All catches alight
At the spread of spring:
Birds crazed with flight
Branches that fling
Leaves up to the light”
—Philip Larkin (19221986)