Debit Spread
Debit spread popularly known as Bull Spread or Call Spread or Vertical spread
Bull spread strategy –
A) Focus primarily on the direction of the underlying,direction is primary & volatilty characteristics is of secondary importance
B) One option is purchased & one option is sold ( option should be of same type or same expiry
C) Debit spread example vs naked option buying Examples :-
we will study debit spread time decay & equation of time dacay & naked option buying with real trade
Debit Spread Calculation
