How to sell Bull Call Spread?

Discussion in 'Options' started by captainbluff, Apr 13, 2007.

  1. I've been doing Bull Call Spreads using debit. For instance if I bought the following below

    Buy to Open Call AAPL 85 July 2007
    Sell to Open Call AAPL 90 July 2007
    Net Debit 3.00

    Normally I've been using Market orders to sell the contracts, my question is instead of using Market, would I be using Net Credit or Net Debit?

  2. semiopen


    I might misunderstand this but a broker usually allows you to enter a net debit or credit for a spread order. Market orders will probably lead to inferior fills.

    My opinion is that it is better to leg into the spread, that is buying or selling one side and then taking the other. Obviously there are some risks doing this.
  3. MTE


    You are buying a spread so you'd use a net debit. And when you are selling a spread you'd use a net credit.
  4. thanks guys
  5. thanks guys