Vertical Spreads

Vertical Spreads Demystified: Bulls, Bears, Credits & Debits There are four types of vertical spreads—and once you know how they work, you’ll see the market in a whole new light. Two are bullish, two are bearish. Two are credit spreads, two are debit spreads. But knowing when, why, and how to use each one? That’s where the real edge lies. This post breaks down each spread type with clear examples, strategic insights, and practical tips for traders who want to level up. Whether you're hedging risk, generating income, or speculating with precision, you’ll learn how to match the right spread to the right market move.