The hidden secrets of Debit Spreads
In this video, we will show you why debit spreads are so simple and yet so powerful when compared to buying calls, puts or just simply buying stock. We will also discuss how debit spreads react to price movement and why they are the best fit for small trading accounts. Here are some of their benefits (more in the video):
- Buying a Call option is usually much costlier than buying a spread.
- Lower initial outlay. Lower risk. Better for small accounts.
- Irrespective of the expiration, or the stock price, spreads cost the same.
- Spreads let your participate in high price equities.
- Fixed Profits, make it easier to control your emotions.