Options Strategy
Last updated
Last updated
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), where S is the underlying asset spot price at maturity, and K are Option Strikes.
Best-Case Scenario: S is equal or more than K2, in which case, payout is K2-K1 Worst-Case Scenario: S equals to is less than K1, in which case, payout is 0 More details: https://www.investopedia.com/terms/b/bullcallspread.asp