Call Credit Spread
(Bearish)
Call credit spread
- An option spread position where the profits are spread between the premiums.
For example:
If you buy 10 XYZ June 90 call options at 5,
and write 10 XYZ June 80 call optionss at 9,
The credit = 4.
The maximum gain is the net credit.
The maximum loss is the difference in the strike prices less the net credit.
The break-even point is the lower strike plus the net credit.
