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:

    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 (1922–1986)