where the trader pays a premium hoping to profit when the options expire. Both strategies are moderately bullish, the only major difference being that the bull put spread is a credit strategy ...

Stella Osoba is the Senior Editor of trading and investing at Investopedia. She co-founded and chaired Women in Technical Analysis. She has 15+ years of experience as a financial writer and ...

(Since a short put spread is always initiated for a net credit, it falls under ... However, in strategies combining sold and bought options, the overall impact of implied volatility is somewhat ...

Since the short call spread is always initiated for a net credit, it falls under the ... accurate directional forecast than some other option strategies, since the trader can profit whether ...

Options allow traders to profit with basic or advanced strategies, based on calls and puts, but are not risk-free, exposing ...

seeks current income by combining a strategy of holding U.S. government securities, including U.S. Treasury Bills and U.S. Treasury Bonds, with a “credit spread” option strategy to seek to ...

Rising credit spreads hint at increased market risk, signaling potential S&P 500 valuation drops. Click here to stay informed on key levels & recession impact trends.