Strike prices of credit spreads

Options Trading Strategies

Credit spreads strike prices

 

When you put credit spreads, one of the choices you make is that of the Strike prices. Although this is mostly an individual choice, there is a sweet spot that balances the collection of premium with the probability of success, with success being defined as the credit spread expiring worthless.

 

Risk versus Reward – that’s what its all about. This video explains the optimal choice of strike prices for a credit spread.

 

 

 

 

Would welcome your comments below.

 

 

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