Spread Summary Table

What this video covers

• Why max gain plus max loss must always equal the spread width, and how to use this as a built-in error check before submitting any answer
• The difference between debit spreads (pay premium, want movement, need exercise) and credit spreads (receive premium, want stillness, want expiration worthless)
• How time decay works against debit spread positions but works in favor of credit spread positions
• The CAL/PUSH mnemonic for breakeven formulas: call add lower (CAL) for any call spread, put subtract higher (PUSH) for any put spread
• Why the option with the higher premium always determines whether a position is debit (net payment) or credit (net receipt)
• How to spot and avoid the two biggest exam traps: forgetting which side paid premium, and selecting a multiple-choice answer whose max gain and max loss do not sum to the spread width