STRATEGY:Hold a call with high strike prics write a call with low strike price

option CALL CALL

underwriting
POSITION HOLDER WRITR
X 110 100
PREMIUM 1 5

FSP E/L Gross GainPremium net gain E/l Gross GainPremium Net gain
75 L 0 1 -1 L 0 5 5
80 L 0 1 -1 L 0 5 5
85 L 0 1 -1 L 0 5 5
90 L 0 1 -1 L 0 5 5
95 L 0 1 -1 L 0 5 5
100 L 0 1 -1 L 0 5 5
105 L 0 1 -1 I 0 5 5
110 I 0 1 -1 E -5 5 0
115 E 5 1 4 E -10 5 -5
120 E 10 1 9 E -15 5 -10
125 E 15 1 14 E -20 5 -15
Total Gain
4
4
4
4
4
4
4
-1
-1
Bull Put Spread

OPTION PUT PUT

UNDERTAKING
POSITION HOLDER WRITER
X 220 240
PREMIUM 3 15
PUT HOLDER PUT WRITER
FSP E/L GROSS PREMIUM NET FSP E/L GROSS
180 E 40 3 37 180 E -60
185 E 35 3 32 185 E -55
190 E 30 3 27 190 E -50
195 E 25 3 22 195 E -45
200 E 20 3 17 200 E -40
205 E 15 3 12 205 E -35
210 E 10 3 7 210 E -30
215 E 5 3 2 215 E -25
220 I 0 3 -3 220 E -20
225 L 0 3 -3 225 E -15
230 L 0 3 -3 230 E -10
235 L 0 3 -3 235 E -5
240 L 0 3 -3 240 I 0
245 L 0 3 -3 245 L 0
250 L 0 3 -3 250 L 0
255 L 0 3 -3 255 L 0
260 L 0 3 -3 260 L 0
PREMIUM NET TOTAL Chart Title
15 -45 -8
50
15 -40 -8
40
15 -35 -8
30
15 -30 -8
20
15 -25 -8
10
15 -20 -8
0
15 -15 -8 170 180 190 200 210 220 230 240 250 260 270
-10
15 -10 -8
-20
15 -5 -8
-30
15 0 -3
-40
15 5 2
-50
15 10 7
15 15 12 NET NET TOTAL
15 15 12
15 15 12
15 15 12
15 15 12
250 260 270