Credit Spread
Definition
An options trade where the premium received from selling an option exceeds the premium paid for a protective option, resulting in a net credit.
Example
Bull put credit spread profits if the underlying stays above the short strike. Debit Spread Category: Options / Strategy Definition: An options trade requiring net payment of premium (debit) where the bought option costs more than the sold op
Frequently Asked Question
What is Credit Spread in trading?
An options trade where the premium received from selling an option exceeds the premium paid for a protective option, resulting in a net credit.
APA Citation
Last updated:
· Source: VixShield Trading Glossary — From SPX Mastery by Russell Clark
⚠️ Not financial advice. This definition is educational content from the SPX Mastery book series by Russell Clark (VixShield). Past performance is not indicative of future results. Trading options involves substantial risk of loss and is not appropriate for all investors. Always paper trade before risking real capital.