Question 1

What is a Call Credit Spread?

Accepted Answer

You sell (short) a Call and buy (long) a further OTM Call

Question 2

What is the max loss of a Call Credit Spread?

Accepted Answer

The max loss is Width of the credit spread minus the credit received.

Question 3

When do I breakeven when utilizing a Call Credit Spread strategy?

Accepted Answer

The breakeven is defined as Strike Price of the sold (short) Call plus the Premium (credit) received.

Question 4

What is the typical application of a Call Credit Spread?

Accepted Answer

The typical applicatio is: 1. Speculate on a neutral to slightly-decreasing price and a neutral or slightly-decreasing volatility.