In finance, a debit spread, a.k.a. net debit spread, results when an investor simultaneously buys an option with a higher premium and sells an option...

when entering the spread. If the opposite is true, then a debit is taken. Spreads that are entered on a debit are known as debit spreads while those entered...

(alternatively call credit spread). If constructed using puts, it is a bear put spread (alternatively put debit spread). A bear call spread is a limited profit...

bull spread can be constructed using either put options or call options. If constructed using calls, it is a bull call spread (alternatively call debit spread)...

an account. Debit may also refer to: Debit card, a type of payment card Debit MasterCard, a brand of debit card Visa Debit, a brand of debit card Bank account...

call spread with a bear call spread or a bull put spread with a bear put spread. Because the long, plain Condor (and Butterfly) combine a debit spread with...

Rainbow Spread Swaption Strategies Backspread Box spread Butterfly Calendar spread Collar Condor Covered option Credit spread Debit spread Diagonal spread Fence...

expire for profit. In contrast, an investor would have to pay to enter a debit spread. In this context, "to narrow" means that the option sold by the trader...

increased credit spread. This explains, for example, the Option Adjusted Spread on a Ginnie Mae MBS relative to the Treasury curve. Credit Spread Risk: The risk...

paper trading account, an investor can set up a bull credit spread and a bull debit spread simultaneously and watch how the payoff for each position changes...