Bullish Put Spread or Put Credit Spread (PCS)- Where you Sell the Higher Strike Put (Short Put) and Buy the Lower Strike Put (Long Put), for an overall Credit. It is Bullish because you profit when the price of the stock stays above your short strike.

Bearish Put Spread or Put Debit Spread (PDS) – Where you Buy the Higher Strike Put (Long Put) and Sell the Lower Strike Put (Short Put) for an overall debit. It is Bearish because you profit when the price of the stock falls below your short strike.
Bullish Call Spread or Call Debit Spread (CDS) – Where you Buy the Lower Strike Call (Long Call) and Sell the Higher Strike Call (Short Call) for an overall debit. It is Bullish because you profit when the price of the stock goes above your short strike.
Bearish Call Spread or Call Credit Spread (CCS) – Where you Sell the Lower Strike Call (Short Call) and Buy the Higher Strike Call (Long Call) for an overall credit. It is Bearish because you profit when the price of the stock goes below your short strike.

1 min read
Mark As Read
Share post
Like post