bull-bear phase spread

In finance, when an investor simultaneously buys an option with a higher premium and sells an option with a lower premium then it results into a debit spread, AKA net debit spread. The investor is referred to as a net buyer and expects the premiums of the two options (the spread) to widen.

Bullish & Bearish Debit Spreads

Debit spreads are needed by the investors to widen for profit.

Calls can be used to construct a bullish debit spread.

Puts can be used to construct a bearish debit spread.

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Tagged as: AKA net debit spread, bearish debit spread, bull-bear phase spread, Bullish & Bearish Debit Spreads, bullish debit spread, Debit spread, difference in premiums, difference in strike prices, For call spreads breakeven, For put spreads breakeven, higher premium, investor, Maximum Gain, Maximum Loss, Maximum Potential, net buyer, option, the spread

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