In this post I will be explaining Debit Spreads which are a relatively risk free way to make profit. This is especially a good strategy for small accounts. There are two types of debit spreads, Call Debit Spread which is a bullish strategy and Put Debit Spread which is a bearish strategy. Call Debit Spread Let's take a look at a Call Debit Spread I have open on CCIV (Lucid Motors) stock. How did I open this Call Debit Spread ? I opened this spread by buying the $30 Call option and simultaneously selling $30.5 Call option. How much did it cost ? $30 Call option was priced at $3.12 and $30.5 Call option was priced at $2.84. Since I bought $30 Call, I had to debit $312 and similarly I got a credit of $284 for selling $30.5 Call. This resulted in a net debit of $28. I bought a total of 20 contracts which cost me 20*$28 = $560. What about the profit ? You can calculate the profit with the difference between the strike prices of the two call options. In thi...