First on the disclaimer, Vertical Spread Options is a relative intermediate options strategy so please understand the mechanics and exercise it with care. A vertical spread is sometimes called a credit spread – which involves simultaneously buying and selling of options of the same underlying at the same expiration date with a different strike price. The goal of a vertical spread is to optimise return through maximising profits while limiting downside risk. This optimisation of returns is achieved through a combination of mechanism which the way options premium and time expiry works – i.e time decay works in favor of options seller (against option buyers) and implied volatility moves with the bullish/bearish direction of the market. A vertical spread strategy reduces these challenges fa