Open Exam Prep

Series 7 Exam Prep 47, Options Spreads

July 24 · 3 min · 3.2 MB
0:00-3:17

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This podcast is made by Ran Chen, who holds an EA license, Insurance and Securities licenses (Series 6, 63, 65), and the CFP® designation. He is passionate about opening access to high-quality exam preparation resources and helping learners prepare more effectively for professional certification exams.

In this episode you will learn:
- How to identify a spread as a debit or credit and its implications for max gain and loss.
- The method for determining if a spread is bullish or bearish, even without given premiums.
- Step-by-step calculations for maximum gain, maximum loss, and breakeven for both call and put spreads.
- The difference between wanting a spread to widen versus narrow and its relation to exercise or expiration.
- A mnemonic to easily remember the desired outcome for debit and credit spreads.

For more free exam prep tools, practice questions, and AI-powered explanations, visit https://open-exam-prep.com/ or YouTube Channel: https://www.youtube.com/@Open-exam-prep