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Thursday, December 24, 2009

Iron Condor » Option Trading: Credit Spread Strategies

Iron Condor » Option Trading: Credit Spread Strategies
A credit spread is a type of vertical spread. It is a trading strategy in which you are buying an option, call or put, at a certain strike price, and simultaneously selling the same type of option at a different strike price of the same month. The sold strike price must have a higher value thus creating a credit at the time the trade is placed.

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