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  • Apple Credit Spreads: Targeting 500% Return [View article]
    Debit, you're right. It's a spread nonetheless, but yes, it would only be a credit if I sold the closer strike and bought the further strike. Thanks for the clarification.

    The rationale, risk/benefit, etc. is all correct.

    To NinjaHamster, I generally just open/close the options positions instead of getting involved with holding the underlying shares. At these prices, holding 200 shares gets quite expensive. With spreads (debit or credit), the liquidity requirements are quite low since your max loss is capped.
    Sep 19 14:24 pm |Rating: 0 0
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