Credit Spreads (CCS and PCS)

A credit spread involves selling one option and buying another at a different strike for protection, collecting a net credit. Call Credit Spread (CCS) — also called a Bear Call Spread. You sell a lower strike call (STO) and buy a higher strike call (BTO). You profit if the stock stays below your short strike. Put Credit Spread (PCS) — also called a Bull Put Spread. You sell a higher strike put (STO) and buy a lower strike put (BTO). You profit if the stock stays above your short strike. When entering a credit spread in Tradez: - The first strike field is always the Short Strike (the one you sell) - The second strike field is always the Long Strike (your protection) - For CCS: short strike is the lower number, long strike is higher - For PCS: short strike is the higher number, long strike is lower Capital at risk = spread width x 100 x quantity. Max profit = premium collected minus fees.