In-The-Money Debit Spreads

Buying in-the-money options. With this strategy, you buy an in-the-money option and you sell another option to help pay for it.

	If you think the price is going up, you can buy an in-the-money call option and sell an out-of-the-money call option.
	On the other hand, if you think the price is going down, you can buy an in-the-money put option and sell an out-of-the-money put option.
	So, for instance, if a particular market is trading at 100, you might buy a 90 call and sell a 110 call. Or, you might buy a 110 put and sell a 90 put.
	The main benefit of this strategy is that the time premium of the option you sell (out-of-the-money options consist entirely of time premium) offsets the time premium of the option you buy, so your position is not subject to time decay. Which means, you get the leverage without having to worry about any time decay at all. So, if the price doesn't go anywhere, you won't lose anything.
	If the price moves against you, you get out with a small loss, as long as you practice good money management.
	If it moves the way you want it to, you can make a profit all the way up to the strike price of the option you sold.