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What exactly is a Credit Spread Option Trade?

credit option spread Trade
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What exactly is a Credit Spread Option Trade?

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It is an option trade in which you buy an out of the money option at a certain strike price and then you sell an out of the money option at a different strike price of the same month. As time goes on the options will decay in value and as long as the price of the index does not go past the sold strike price at the end of expiration you will receive a full credit winning trade.

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