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:
“Money is a poor man’s credit card.”
—Marshall McLuhan (1911–1980)
“Ah, but to play man number one,
To drive the dagger in his heart,
To lay his brain upon the board
And pick the acrid colors out,
To nail his thought across the door,
Its wings spread wide to rain and snow,
To strike his living hi and ho....”
—Wallace Stevens (1879–1955)