January is closer and December is further how is this a credit spread? Am i missing something? Thanks
Although it doesn’t say anything about when this was purchased, we can infer that the longer expiration is in January. This is because options (with the exception of LEAPS) have a max 9-month expiration. It would not be possible to do a spread with e.g. Jan 2022 and Dec 2022 (since that would mean it is currently Q4 2021 or earlier, and the Dec 2022 options would have an impossible 10+ mo expiration). So the expirations must be Jan 2022 and Dec 2021, and we’re probably in Q3 or Q4 2021.
It can seem kinda silly but just sketching out a timeline with calendar months and the expirations can help a lot!