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With so many strike prices to choose from, how might you select strike prices when trading debit vertical spreads?
To recap, two of the four vertical spreads are considered debit spreads because you pay a premium to enter the trade.
The two debit spreads are the bull call spread, and bear put spread.
In this video, we’ll cover two common methods for choosing strike prices when trading debit spreads, as well as compare the pros and cons of each approach.
While there’s no single “optimal” way to choose strike prices, this video should help guide you towards more strategic strike price selection when buying call or put spreads.
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