V. 21:6 (96): Explore Your Options by Tom Gentile

V. 21:6 (96): Explore Your Options by Tom Gentile
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Explore Your Options by Tom Gentile

CREDIT AND DEBIT SPREADS

What are some money management tips for credit and debit spreads? Specifically, when should I get out if a spread goes against me? —Bob

Great question. By purchasing or selling spreads, you’ve minimized the risks of stock ownership while maintaining a greater potential return on investment. However, just because you have taken the measure to place a spread trade doesn’t mean you should just “set it and forget it.” So when exactly is the best time to get out of a spread? Since you asked for both a debit and credit spread, it requires two different answers:...




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