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:
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—Sarah Louise Delany (b. 1889)
“yet it seems
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Scarce spread a glory to the morning beams,
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And there’s but common greenness after that.”
—William Butler Yeats (1865–1939)