In order to understand when you are profiting off of a spread, you first need to determine whether it is a debit or credit spread. A spread is a debit spread if the long option has a higher premium than the short option; a spread is a credit spread if the short option has a higher premium than the long option. In terms of determining profitability, there is a mnemonic device that can help you recall that you want your debit spread to widen, and your credit spread to narrow.
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17 окт 2024
