Option Spread Strategies: Rapid Fire

What this video covers

• How the four vertical spreads pair by direction: one debit and one credit for each bullish or bearish view
• Why a put bull spread is bullish even though it is built entirely from puts, and why direction comes from position structure not option type
• How maximum profit plus maximum loss always equals the strike difference, and how to derive either value when you know the other
• What an option calendar spread is: same type, same strike, two expirations, selling the near-term leg to harvest faster time decay, with loss capped at the debit on both sides
• Why an option calendar spread is not a futures calendar spread, and why importing carry-logic from the spreading chapter into an options question is a trap
• How put-call parity creates synthetic futures, and what triggers a conversion (rich call: long futures, long put, short call) versus a reversal (cheap call: short futures, long call, short put)
• Why swapping the option legs of either arbitrage destroys the hedge and turns a riskless position into speculation
• The memory aid that locks debit and credit mechanics together: D for debit, D for distend (widen); C for credit, C for close (narrow)