Sunday, July 17, 2011

bull strategy BULL CALL SPREAD

Example: Buy 1 call;                           
sell 1 call at higher strike
Market Outlook: Bullish
Risk: Limited
Reward: Limited
Increase in Volatility:
Helps or hurts depending
on strikes chosen
Time Erosion: Helps or hurts
depending on strikes chosen
BEP: Long call strike plus
net premium paid

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