> For the complete documentation index, see [llms.txt](https://docs.superhedge.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.superhedge.com/superhedge-products/n-vaults/options-strategy.md).

# 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="/files/SodFBISqth2LBE2yxN1y" 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.*\
\
![](/files/6BH1Hx8UdhR7gaRupoql) \
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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)