You're listening to the Option Alpha Podcast from Option Alpha.com where we show you how to make

smarter trades learn how the stock market really works and generate consistent monthly

income. Now your host and head trader at

option alpha.com Kirk depluses.

Everyone this is Kirk here again at option alpha.com working every single week to make

this the most popular investing podcast offered online and in iTunes because it's

based on one thing and one thing only and that's helping you guys make smarter trades.

So again, thanks so much for tuning into today's show.

On today's episode, we are going to talk all things, debit spreads and credit spreads.

In particular, we're going to talk through all the different scenarios about

when you would use each one of these, the kind of market environments, directional assumptions,

all of that stuff that might help you make a smarter decision. Now, as we start getting into this show,

I want to talk about both of these,

and then we'll talk about just some more stuff

on like when to use different deltas and timelines,

things like that, towards the end of this

episode or towards the end of this I guess segment before we get into Trader Q&A and

the closing bell so that's going to be the kind of layout here for today so to get this thing started off with we're going to talk debit

spreads first. Now debit spreads really quickly for those of you who are not familiar with what

debit spreads are, these are directional option buying strategies where you are net paying for an option

spread. So in this case you might buy a put debit spread which would be a directionally

bearish position where you're buying a put option

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