Spruce Knowledge Base

A step-by-step education path: how options work, how traders manage risk in different ways, then — only after that — a deeper look at defined-risk credit spreads as one operating choice.

Not financial advice

Nothing here is a recommendation to buy, sell, or hold any security. Verify brokerage, tax, and account rules with your broker and qualified advisors (including the CRA where relevant).

How to walk this site

Read in order the first time.

1. Options mechanics (no strategy priority yet)

1. How to use this site
2. Glossary
3. Options basics
4. Single-option payoffs
5. Greeks → Weekly vs monthly

1b. What to actually buy (beginner)

• Beginner selection scorecard — how to score a list
• Example scored watchlist — tickers + scores, no account sizes

2. Risk management as a menu

1. Ways to manage risk
2. Compare strategies with one example — wins and losses side by side

3. Credit spreads in depth (one defined-risk tool)

1. Credit-spread payoffs
2. Defined-risk overview → PCS → CCS
3. Risk policy proposal
4. Operating checklists · order types · long-call example · PCS example

4. Canadian account notes

1. Canadian brokers · TFSA · Cash vs margin

Optional: HITL / dry-run · Sources.

What you will learn

• How calls and puts win and lose on their own
• Categories of risk management (sizing, coverage, spreads, portfolio caps, events)
• Why a credit spread often has max loss larger than max profit — and how a debit spread flips that shape
• Why Spruce later prioritizes defined-risk credit spreads for an operating system

This is a knowledge base, not a brokerage or signal service.