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We've talked about How To Trade A Vertical Spread, Call Debit Spreads, Put Debit Spreads and Put Credit Spreads. What I like about Debit Spreads is the reduced cost and they reduce the "break even."For this example, I'm using tastyworks.I use the PowerX Optimizer to find the best stocks to trade.When trading there are 3 things you need to know:1) What to trade2) When to enter3) When to exitTGTX:- Enter at 20.43- Expecting stock to go as high as 25.37 (profit target)- Stop-loss set at 18.61The PowerX Optimizer told me: -Trade the 20 call w/ an expiration of 8/21.- Spend no more than 2.10 when buying this option.- Max Risk = $210 (you can't lose more than you pay for the call)- Max Reward = Unlimited- Breakeven = $22.41Here's what I did:- I sold the 25 call for 0.50- My cost is now 2.10 - 0.50 = $1.60 ($160)- Max Risk = $160- Limited if the Stock reaches $25 or above.- Breakeven = $21.60- Reward Cap = if stock reaches $25 or above.So by trading a spread here, we reduced our cost and breakeven.Recommended Videos and Links:Call Debit Spreads Explained: https://youtu.be/9tkZOnG2bAsPut Credit Spreads Explained: https://youtu.be/8OKG9U9LAogThe Best Vertical Spread Option Strategy 2020: https://youtu.be/CcU40-TjdZMOptions Trading 101: https://youtu.be/tXpBZGj-FiAMy Trading Plan: https://mytradingroutine.com/