The trading math for call and put options vertical spreads is first determined by the spread strike width, and whether it is long or short. Since these are covered spreads, the maximum loss will be the strike width minus the debit paid or the credit received.
Call And Put Options Spreads Trading Math
November 11, 2013 by Barry Lutz
Filed under: Options Trading Basics
Tagged with covered short options, credit spreads, debit spreads, option spreads, options trading math, stock option hedges
Tagged with covered short options, credit spreads, debit spreads, option spreads, options trading math, stock option hedges