Don Fishback

Debit Spreads

Debit Spreads

by Don Fishback Vertical Debit Spread A vertical debit spread results when simultaneously buying and selling puts or calls of the same option class and expiration date, but with different strike prices.  Because it is a debit (net cash paid out), the option purchased...

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Option Short Sale: Selling a Call

Option Short Sale: Selling a Call

From Don Fishback It is very important to note that when you sell an option short, the buyer has all the rights.  You, the option seller, have none.  The option seller only has obligations. When you sell a call option short, you are expecting the underlying...

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