Understanding Debit vs Credit Spreads l Options Trading - Which is better?

[@tonydavis7088]

Hey Tony, My name is Tony too and I just want to congratulate you on your new addition to your family first of all. Secondly, I thank you for your honest and straight forward style of teaching Options Trading. I thank you for not teaching in such a way of constantly talking about money and thousands of dollars that people can make if they do this as if to motivate them to hurry up and spend their money or to join Options Play the way the many scammers do. Your teaching videos are so full of details as if you are truly and honestly trying to help your viewers to get this information and become successful in life. Thank you again and I will be listening and trying my best to get this everyday. God bless you and your family. Sincerely, Tony Davis of Charlotte, N.C.

[@gracechan5345]

Thank You again! Tony! Great to watch you again this week!

[@OptionsPlay]

Thanks, Grace!

[@SandpitCrew]

Thank you for this, another premium content. Easy to understand and well explained.

[@OptionsPlay]

happy to hear that! Thanks for watching!

[@venkateshramadhyani8149]

I agree and always like to hear from Tony. I would also want to know more on the margin with the credit spreads.

[@410nikko6]

I just found you not long ago...I really like the way you explain things..thnx much

[@OptionsPlay]

Thanks for your support!

[@TheStockAlchemist]

You mentioned to get out of a credit spread when it reaches 21 days to expiration. What was the original DTE? 45 days? Also, do you have any videos on how to get a directional bias?

[@rosalinacilani5106]

Another video that I couldn’t live without. I love your insight into everything. Thank you!

[@OptionsPlay]

Thank you so much!

[@ray.d7054]

Great explanation and demonstration Tony easy to understand and learn. Thank you, very helpful.

[@OptionsPlay]

Glad it was helpful!

[@SolidBased]

There’s stocks that rip everyday that’s why there’s more credit spread opportunities lol!! And why I prefer debit spreads!

[@michaelb1544]

Great stuff Tony! Is there a chance that although the greeks are similar, leading to expiration (4/5 days before expiration), assuming that the underlying is slightly out of the money in both cases, credit spreads (short call spread) will earn more money than an identical debit spread (long put spread), whereas at the end they will be equally profitable? it feels like in the latter the value of the shorted put is going to rise, eating into the profits seen from the long put, whereas in the former both will lose value?

[@AM-yd5dt]

Great content Tony especially your P&L simulator when putting in trades.... Learned something new about directional view (mild vs significant) when choosing debit vs credit spreads.... I was focusing on IV only thus far.... Great value added Tony.... Thank you

[@passivedividendsoptions]

Very informative video, I have used both in the past. And think they both can be great strategies to use. Just depends on environments, your risk tolerance & different styles as far as which ones could be better.

[@kane99560]

great info...idk know if i see the purpose of debit spreads tho....if i think a stock will make a huge move i am just gonna flat out buy the calls. debit spreads feels like youre not sure about your conviction so youre capping your gains but minimizing your risks which for me kinda defeats the purpose...if i doubt the move i am not buying either. my 2 cents

[@unawant1]

i would sell a credit spread at support, not resistance, correct? You highlighted at 25:41 - to sell a credit spread at resistance & buy a debit spread at support? Did i hear that right? Are you looking at call or put? A Put Credit spread will be at support, a call credit spread at resistance, right?

[@Obi2020-c8x]

Can’t you buy ITM debit spreads for short term

[@anandukanagaraj]

Why credit spread strategy have to close the trade at 21 days?

[@scottogieva7728]

I don't understand anyone, I want to know which one is best

[@RichardHoltVen]

2

[@rktile8966]

At 13:00 you talk about being break even at $14.50, you forgot to add the 54$ cost of contract. In reality you are not break even until $15.04

[@johnliang7587]

Sell Credit Spreads

[@yatishanand1705]

P Please p

[@paulreilly5987]

Big effort to make $35…

[@beck4218]

There is no difference between a credit and a debit spread. Long the 14/16 call spread + long the 14/16 put spread (debit) = a long $2 box. It's an arb. So a long cs = the short ps. So neither is better.

[@emannuelchildish8022]

Hey Email me an apology and we can go to do stuff. Get help? whatever you want. Ill help after you get some help