How to Select the Best Long Strike for an Options Credit Spread

10/12/2015 8:00 am EST

Focus: OPTIONS


In this video, options expert Seth Freudberg, of SMB Options Training Program, discusses how to decide the best long strike to select when selling a credit spread with a directional viewpoint in mind.

In this video, you will learn:


  • Why the strike separation that yields the highest dollar credit is usually not the best long strike to select.
  • Why you need to focus on return, not dollars when making the long strike decision.
  • Which strike is usually the best long position to take on a credit spread trade.

By Seth Freudberg, Director, SMB Options Training Program

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