Wide credit spread

Discussion in 'Trading' started by SanMiguel, Feb 8, 2020.

  1. SanMiguel

    SanMiguel

    By closing it I make an immediate loss... but financed by the new spread?
     
    #11     Feb 8, 2020
  2. Bum

    Bum

    Correct.

    Eventually you need the stock price to close below your lowest strike price so you can keep the money rather than keep rolling.
     
    #12     Feb 8, 2020
  3. SanMiguel

    SanMiguel

    In the example above, it's non directional, or even bearish ie I don't want the strikes to be hit.
    Is there any such thing as a directional credit spread.
    Ie buying ITM or close to the money call and selling a higher call to pay for it? Ie I want to be long by expiration?
    Or even price is at 69. Buy a call at 70. Sell call at 75. Seems they are always debit trades
     
    #13     Feb 9, 2020