# Options Strategy

### 1) Bullish Call-Spread (CS)

A call-spread strategy involves buying a call option at a lower strike price and selling a call option at a higher strike price, with the same expiration, reflecting a **bullish view** on the underlying market

**Option Payout: Max (S-K1, 0) - Max (S-K2, 0),** \
\&#xNAN;*where S is the underlying asset spot price at maturity, and K are Option Strikes.* \
\ <img src="https://3592879-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FycCgi8Q2btDJLeSgNa6m%2Fuploads%2FhyT4qGqhLcDnpJqvS2VW%2FBullish%20CS%20Payoffs.png?alt=media&#x26;token=a431593d-e215-4e6c-8ac2-da1aa25c15b0" alt="" data-size="original">\
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Best-Case Scenario: If S is greater than or equal to K2, the payout is K2-K1\
Worst-Case Scenario:  If S is equals to or less than K1, payout is 0\
More details: <https://www.investopedia.com/terms/b/bullcallspread.asp>

### 2) Bearish Put-Spread (PS)

A put-spread strategy involves buying a put option at a higher strike price and selling a put option at a lower strike price, with the same expiration, reflecting a bearish **view** on the underlying market

**Option Payout: Max (K2-S, 0) - Max (K1-S, 0),** \
\&#xNAN;*where S is the underlying asset spot price at maturity, and K are Option Strikes.*\
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![](https://3592879-files.gitbook.io/~/files/v0/b/gitbook-x-prod.appspot.com/o/spaces%2FycCgi8Q2btDJLeSgNa6m%2Fuploads%2FDpKEPJJDDicFB1s6kr88%2FBearish%20PS%20Payoffs.png?alt=media\&token=35fb1dc3-2d93-4053-9ecb-6b6a9e881116) \
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Best-Case Scenario: If S is less than or equal to K1, the payout is K2 - K1.\
Worst-Case Scenario: If S is greater than or equal to K2, the payout is 0.\
*More details:* [*https://www.investopedia.com/terms/b/bearputspread.asp*](https://www.investopedia.com/terms/b/bearputspread.asp)