STRATEGY | Bear Call Spread |
MARKET OPINION | Bearish |
MARKET POSITION | Sell a lower strike price call and buy a higher strike price call on the same commodity with the same expiration date |
OPTION STRATEGY | Net credit [premium received is greater than premium paid] |
PROFIT POTENTIAL | Limited to the net credit |
PROFIT POINT | Any futures price below the [lower strike price plus net credit]; maximum profit point is any futures price at or below the lower strike price |
LOSS POTENTIAL | Limited to the [difference between the strike prices] minus the net credit |
LOSS POINT | Any futures price above the [lower strike price plus net credit]; maximum loss point is any futures price at or above the higher strike price |
BREAK-EVEN-POINT | Lower strike price + net credit |
MARGIN REQUIRED | Yes |
DELTA | [Delta of call bought]-[Delta of call sold] |
