Peter Lusk Talks Stock Options: Out-of-the-Money Call Credit Spread

Strategy Discussion

Out-of-the-Money Call Credit Spread

Example: Stock is trading at $68

Outlook: You are neutral to bearish and would like to generate income from short term time decay.

Possible strategy: Credit Spread 
Sell one 30-day 75 strike call at $2.10
Buy one 30-day 80 strike call at $1.10
Net Credit $1.00

For more information on the risks and benefits of this strategy Click Here

Watch host Peter Lusk explore this strategy on CBOETV