Credit Spreads Explained: Get Paid Upfront With Defined Risk
Credit spreads explained step by step: sell one option, buy a further one and get paid upfront with a hard cap on risk. Bull put and bear call spreads with worked examples, strike selection and trade management.
Learn how credit spreads let you collect premium upfront while capping your maximum risk. We walk through the bull put spread and bear call spread step by step with full examples, covering max profit, max loss, breakeven, strike selection and trade management. For educational purposes only, not financial advice.