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Setting Up At-The-Money Debit Spreads

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Options involve risk and are not suitable for all investors. Please read Characteristics and Risks of Standardized Options before deciding to invest in options.

For an at-the-money (ATM) debit spread, we look to risk one to make one (also known as a 50/50 probability of profit). Paying more than half the width of the spread will lower our probability of success!

Learn more about vertical spreads here!

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