January is closer and December is further how is this a credit spread? Am i missing something? Thanks
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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!
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