Does "buying" a call or put spread equate to a "debit" spread?
And does "selling" a call or put spread equate a "credit" spread?
Thanks - Debra
Yes and yes.
When you buy a vertical (both options expire on same date) spread, you buy the more expensive option and sell the less expensive option.
Thus, buying a spread means you pay a debit and selling means you collect a credit.
Mark D. Wolfinger
The Rookie's Guide to Options:The Beginner's Handbook of Trading Equity Options