← notes Technique
Credit vs debit is not a choice
Rule
Do not choose a structure on the grounds that it is a credit rather than a debit.
When it applies
Any time the reasoning contains 'collect premium' or 'credit spreads decay in my favour'.
What it means
By put-call parity a bull put spread and a bull call spread at the SAME strikes are synthetically equivalent: same theta, same vega, same risk/reward, differing only by financing. 'Credit spreads have better theta' is false. Choose on strike selection, on which side has the tighter market, and on early-assignment exposure.
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