Worksheet:

Follow Along
Section 8: Call Backspread

The stock is PayPal, the Ticker is PYPL, the date is September 11,2017.
The price of PayPal at that moment is $62.64. To put on this Backspread
here is how I will structure it. I am going to sell 1 of the JAN 62.5 Calls
and I will collect $4 in premium. I will use that premium to buy 2 JAN
67.5 Calls paying $1.905. The way I like to structure this trade is that
the net that I receive (4) I want that to be larger than the amount I am
paying. So I will receive 4 and I will pay 3.81 so it will be a net credit.
Whenever you set up these trades try to set up a net credit. PayPal's
stock has a very nice uptrend and looking at the PNL I am expecting a
very large move to the upside in PayPal. PayPal continues to move up
from September to January and then you can see the PNL really shoots
up in this backspread. Keep in mind when PayPal wasn't gapping
higher I was starting to not make a lot of PNL on this backspread.
 Call Backspread
Sell: 1 PYPL
Expiration: JAN
Strike Price: 62.5 Call

Option Price: 4.0

Buy: 2 PYPL
Expiration: JAN

Strike Price: 67.5 Call 

Option Price: 1.905

Unlimited
Max Profit
Formulas

Max Loss (Long Call Strike - Short Call Strike +/-

Net Premium Paid/Received) X 100

Breakeven (Higher) 2X Long Call Strike - Short Strike Call

+/- Net Premium Paid/ Received

Breakeven (Lower) Short Call Strike +/- Net

Premium Paid/Received
Calculate the Formulas

Max Loss

Max Gain

Breakeven Higher

Breakeven Lower

PYPL Price
at Expiry

Net Result