Options
Why Credit Spreads Are One of the Easiest Options Strategies to Learn
Date: 2026-10-04 12:00:06
If you want an options strategy with:
• Defined risk
• A simple structure
• Fewer moving pieces
• Easy backtesting and adjustments
…credit spreads are a great place to start learning.
There are two basic versions:
A short put credit spread if you want the market to stay above a certain level.
A short call credit spread if you want the market to stay below a certain level.
In this example, we build a short put spread on SPY by:
• Selling a put closer to the current price
• Buying another put below it
• Defining the width of the spread
• Defining the maximum risk
The short option generates most of the premium.
The long option helps define the risk.
Simple structure. Clear rules. Easy to test.
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#OptionsTrading #CreditSpreads #OptionsForBeginners #SPY #TradingEducation #OptionAlpha
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This video is for educational purposes only and is not a recommendation for buying/selling any security. Options trading is risky, so please read our full risk disclosure here: https://optionalpha.com/legal/risk-disclosure-agreement
