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Strategies & Market Trends : Option Spreads, Credit my Debit

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To: jjs_ynot who wrote (543)2/15/1999 5:50:00 PM
From: NateC  Read Replies (1) of 2317
 
You wrote
<<Did you prefer butterfly spreads to pure credit spreads esp. if you had a sense of
direction for the underlying and could leg into it?>>

because some of us are at a sl. more "junior" level.....could you explain the terms here to be sure we're all on the same page. do you mean by "credit" spreads....any spread that results in "cash out", or money being put into your acct.. (bull put spreads usually do this) as opposed to "debit spreads"..where you are out some $'s...as in call spreads???

when you say "leg into it"., I'm presuming that you're talking about waiting for stock movement....down for buying a call leg.....to allow you to get a better price on the call you need to buy to complete the spread.
Is my interpretation of the jargon close?
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