Verticals
Butterflies Calendars Desk Notes Diagonals Synthetics Verticals
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Vertical Spreads as Prices on Probabilities: Reading Credit Against Width
A vertical spread's price divided by its width is a rough market estimate of the odds it pays out. A rules-first guide to reading credit against width, break-even win rates, credit versus debit at the same strikes, and common mistakes, with illustrative numbers.
