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:
“To give money to a sufferer is only a come-off. It is only a postponement of the real payment, a bribe paid for silence, a credit system in which a paper promise to pay answers for the time instead of liquidation. We owe to man higher succors than food and fire. We owe to man.”
—Ralph Waldo Emerson (1803–1882)
“The philanthropist too often surrounds mankind with the remembrance of his own cast- off griefs as an atmosphere, and calls it sympathy. We should impart our courage, and not our despair, our health and ease, and not our disease, and take care that this does not spread by contagion.”
—Henry David Thoreau (1817–1862)