Are higher price stocks better for debit spreads?

Discussion in 'Options' started by antares66, Sep 29, 2023.

  1. Is it better to use higher price stocks ($200-$700) for debit spreads because a small % change in your direction would lead to a bigger gain and you haven“t to buy more than one vertical spread (lower commision)?
     
  2. I don't think it's necessary to have high priced stocks.
    You can make the strikes closer and you'll have a more steep curve for your payouts.

    Easy to check out your scenario using an Option Profit calculator, such as this one:
    https://www.optionsprofitcalculator.com/