Debit vs. Credit Spreads in Low Vol

asked by u/neha_j · 7d · 1 answers

When IV is relatively low, I tend to lean more towards debit spreads, specifically vertical calls or puts, to gain directional exposure without paying excessive premium. Does anyone find more success with credit spreads in similar environments, perhaps focusing on higher probability trades?

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  • u/santos_luciana· 4 pts· 7d

    I'm with you on debit spreads in low vol. The lower premiums make them more attractive for directional plays. Credit spreads feel like picking up pennies in front of a steamroller sometimes, especially when there's not much premium to capture.