Based on your financial expertise, provide your response or viewpoint on the given financial question or topic. The response format is open.

When writing a covered call, what's the difference between a “net debit” and a “net credit”?
When you enter into a multi-legged trade where one is a buy and one is a sell, the limit is expressed as either: The gist is that you don't care what each individual piece costs; you only care what the cost of the bundle is. When you put on a buy-write, you are buying stock and selling a (covered) call against that stock.  That trade will always cost money. Putting on a buy-write will always be done at a net debit.  This is because is is normally impossible for a call to be worth more than its underlying stock price.  There are a few possible reasons there would be a"net credit" option for what's described as a "buy-write":