Spreads

Option spreads are a very flexible trade. They can be done for a credit or debit, they can be bullish or bearish, and can be done in either puts or calls. A bullish spread is the purchase of an option at one strike and the sale of another option at a higher strike. A bearish spread consists of the purchase of a long option and the sale of another option at a lower strike.

Debit Spreads

Theta

Delta

Vega

Credit Spreads

Theta

Delta

Vega