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
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
