Trading options spreads – credit spreads vs debit spreads. When trading options spreads I am often asked, “Which is better, credit spreads or debit spreads.” Both positions can be equivalent from a risk/reward structure if the same strike prices for a vertical spread are used, but there are some subtle differences that influence my decision. In this video, I describe both types of vertical option spreads and which one I prefer most of the time.
Credit vs. Debit Spreads
April 18, 2022