For a spread to be successful, the difference in strike prices must be greater than the net cost of the purchased option(s).

Name: For a spread to be successful, the difference in strike prices must be greater than the net cost of the purchased option(s).
Brand: Quizplus
Rating: 4.9 (41 reviews)

Question

Quizplus · Accepted Answer

For a spread to be profitable, the potential gain from the difference in strike prices should exceed the net cost of the options purchased, ensuring a positive return.

For a Spread to Be Successful, the Difference in Strike