SPREAD STRIKE （图）

sell spread ( purchase spread is costly ):

- sell put if stock is uptrend,  sell call if downtrend.  resis and support are used to choose strikes. 

- we always want short with higher premium than long, so we can take credit.  For call, both short and long are above current stock price.  Lower strike =higher premium, since it is relative easy to reach.  Call buyer wants to pay more.  For put, it is opposite.  to make it clearer, I drew the following.