Buying And Selling Spreads at Buying

Buying And Selling Spreads. How to trade futures spreads. You sell a call spread when you sell the lower strike call and buy the higher strike call.

Credit spreads are an income strategy, because premium is collected when initiating the trade. A bull put spread is best used when the market consolidates or the stock you want to trade is rising. You sell a put spread when you sell the higher strike put and buy the lower strike put.

Buying a spread refers to the act of initiating an options strategy involving buying a particular option and selling a similar, less expensive option in a single transaction. To finish, we explore the essentials of buying and selling vertical spreads including directional bias, debits and credits, probability. A credit spread or vertical spread is simultaneously buying and selling calls or puts with different strike prices. You sell a put spread when you sell the higher strike put and buy the lower strike put.