Bullish Debit Spread or Credit Spread?
If you are bullish and want to trade an option spread strategy, implied volatility is the main factor when deciding between bull call debit spreads and bull put credit spreads.
Kirk Du Plessis
Apr 19, 2021
Choosing between using a debit spread or credit spread for a bullish stock setup requires that we first take a look at where implied volatility is trading. If IV is high then we want to be a net seller of options and would opt for selling a put credit spread below the market. If IV is low then we want to be a net buyer of options and would alternatively opt for buying an ATM call debit spread.
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