How is this not a debit spread? I’m sure it’s something obvious that I’m overlooking and I’m sure someone’s going to point out that I’m an idiot for missing it. I know that you want the premium of a debit spread to widen and the premium of a credit spread to narrow.Buy 1 RST Jan 40 Call; write 1 RST Jan 30 Call The longed premium is more than the short premium which is a Debit spread in which I want the premium to Widen, right? My Kaplan book says otherwise.
Read the explanations carefully. It makes sense. Just slow down, and take your time. It will start to click.