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Explore Your Options | JUN 2003
Explore Your Options by Tom Gentile
Explore Your Options by Tom Gentile CREDIT AND DEBIT SPREADS What are some money management tips for credit and debit spreads? Specifically, when should I get out if a spread goes against me? —Bob Great question. By purchasing or selling spreads, you’ve minimized the risks of stock ownership while maintaining a greater potential return on investment. However, just because you have taken the measure to place a spread trade doesn’t mean you should just “set it and forget it.” So when exactly is the best time to get out of a spread? Since you asked for both a debit and credit spread, it requires two different answers:...
by Tom Gentile
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