Debit Spread

A debit spread is a two-leg vertical: buy a closer-to-the-money option, sell a further OTM option of the same type. You pay a debit on entry and bet on direction. Defined risk by construction. The directional engine uses debit spreads, often funded by an offsetting credit spread (a pair structure). The profit target is 82% of max profit.

Financial Information Disclaimer

This site provides general information about ACondor, a software tool for automating options trading strategies. Nothing on this site is investment, tax, or financial advice. Options trading involves substantial risk of loss. Past behavior of any strategy does not guarantee future results. Consult a licensed financial professional before trading options. ACondor may earn a commission from affiliate links at no extra cost to you.