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Hub You - Vertical Spreads - Construction of a Vertical Spread
Who Else Wants to Sky Rocket Their CD Sales, Fan base and Indie Music Career?
If YOU Answered YES, Then Start An Online Newsletter…It’s Easy, Here’s How!I’ve always praised the benefits of using a newsletter to promote your music, but this article give a bit more detail into how to go about it.First, there are tons of different providers out there that can send out your email newsletter. Some are expensive while other like cafepress.com allow you to make one free if you sell products through them. Although this isn’t EVERYTHING you could do it is a good starting place.Define the letter – is it going to be strictly about your band or other acts in your genre? You might be able to pick up other readers/listeners who weren’t aware of your music, but know other acts if you go broader..
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
put) and the sale of a call (or put) in the same stock and in
the same month. The only difference between the two options is
the strike price. For instance, a vertical spread can be
constructed by purchasing the IBM June 55 call while selling the
June IBM 60 call. This trade would be called the IBM June 55 -
60 call spread. Similarly, a purchase of the IBM July 45 put and
sale of the IBM July 60 put would be called the IBM July 45 – 60
put spread.
The key to the construction of vertical spreads is that you
choose the options that are in the same stock, same month, but
different strikes and in a 1 to 1 ratio. That is, you must
purchase one option for every one you sell or sell one option
for every one you buy.
Value and the Vertical Spread
A vertical spread’s maximum value is the difference between the
two strikes. For example, the maximum value of the June 55 – 60
call spread is $5.00. [60 – 55] = $5.
Using the June 55 – 60 call spread example, we will set the date
to June expiration on Friday. On that day, all the June options
will expire and the options will be worth parity, as all of the
extrinsic value will have eroded away.
Where does the spread get its value? Basically, from its two
components - the call (or put) you buy or the call (or put) you
sell. Let’s look at the spread’s value with a couple of
different closing stock prices. If the stock closes at $55, then
both the 55 strike and the 60 strike will be out of the money
and thus worthless. The value of the spread will be zero as both
options are worth $0. If the stock closes at $57.50, the June 55
calls will be worth $2.50. The June 60 calls will be out of the
money and thus worthless, therefore the spread will be worth
$2.50 (June 55 call $ 2.50 – June 60 call $0).
If the stock closes at $60.00, then the June 55 calls will be
worth $5.00. Meanwhile, the June 60 calls will be worth $0. This
means that the spread will be worth $5.00 (June 55 call $ 5.00 -
June 60 call $0). This is the maximum value of the spread. Note
that the maximum value is identical to the difference between
the strikes.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
choose the options that are in the same stock, same month, but
different strikes and in a 1 to 1 ratio. That is, you must
purchase one option for every one you sell or sell one option
for every one you buy.
Value and the Vertical Spread
A vertical spread’s maximum value is the difference between the
two strikes. For example, the maximum value of the June 55 – 60
call spread is $5.00. [60 – 55] = $5.
Using the June 55 – 60 call spread example, we will set the date
to June expiration on Friday. On that day, all the June options
will expire and the options will be worth parity, as all of the
extrinsic value will have eroded away.
Where does the spread get its value? Basically, from its two
components - the call (or put) you buy or the call (or put) you
sell. Let’s look at the spread’s value with a couple of
different closing stock prices. If the stock closes at $55, then
both the 55 strike and the 60 strike will be out of the money
and thus worthless. The value of the spread will be zero as both
options are worth $0. If the stock closes at $57.50, the June 55
calls will be worth $2.50. The June 60 calls will be out of the
money and thus worthless, therefore the spread will be worth
$2.50 (June 55 call $ 2.50 – June 60 call $0).
If the stock closes at $60.00, then the June 55 calls will be
worth $5.00. Meanwhile, the June 60 calls will be worth $0. This
means that the spread will be worth $5.00 (June 55 call $ 5.00 -
June 60 call $0). This is the maximum value of the spread. Note
that the maximum value is identical to the difference between
the strikes.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
will expire and the options will be worth parity, as all of the
extrinsic value will have eroded away.
Where does the spread get its value? Basically, from its two
components - the call (or put) you buy or the call (or put) you
sell. Let’s look at the spread’s value with a couple of
different closing stock prices. If the stock closes at $55, then
both the 55 strike and the 60 strike will be out of the money
and thus worthless. The value of the spread will be zero as both
options are worth $0. If the stock closes at $57.50, the June 55
calls will be worth $2.50. The June 60 calls will be out of the
money and thus worthless, therefore the spread will be worth
$2.50 (June 55 call $ 2.50 – June 60 call $0).
If the stock closes at $60.00, then the June 55 calls will be
worth $5.00. Meanwhile, the June 60 calls will be worth $0. This
means that the spread will be worth $5.00 (June 55 call $ 5.00 -
June 60 call $0). This is the maximum value of the spread. Note
that the maximum value is identical to the difference between
the strikes.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
calls will be worth $2.50. The June 60 calls will be out of the
money and thus worthless, therefore the spread will be worth
$2.50 (June 55 call $ 2.50 – June 60 call $0).
If the stock closes at $60.00, then the June 55 calls will be
worth $5.00. Meanwhile, the June 60 calls will be worth $0. This
means that the spread will be worth $5.00 (June 55 call $ 5.00 -
June 60 call $0). This is the maximum value of the spread. Note
that the maximum value is identical to the difference between
the strikes.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wide; its maximum value
is the difference between the two strikes. Further, the vertical
spread’s maximum value (the difference between the two strikes)
holds true for vertical put spreads as well as vertical call
spreads. Look at our other example, the July 45 – 60 put spread.
Again we set time forward to Friday, July expiration. We set the
stock closing price at $60.00. At $60.00, both the July 45 puts
and the July 60 puts will be out of the money and thus
worthless. With both the July 45 puts and July 60 puts
worthless, the spread is also worthless (July 60 put $0 – July
45 put $0). If the stock finishes at $52.50, then the July 60
puts will be worth $7.50 while the July 45 puts will still be
worthless. In this scenario the July 45 – 60 put spread will be
worth $7.50 (July 60 puts $7.50 – July 45 puts $0). If the stock
finishes at $45.00, then the July 60 puts will be worth $15.00
while the July 45 puts will be worth $0.
At this level, the spread will be worth $15.00 (July 60 puts
$15.00 – July 45 puts $0). This is the maximum value of the
spread. As you can see it is identical to the $15.00 difference
between the strikes. As the stock goes lower, the July 45 puts
become in-the-money and gain intrinsic value. Now, for every
penny that the stock decreases in value, the July 60 puts and
the July 45 puts will gain value equally, keeping the $15.00
spread between the two strikes constant. To see this, refer to
the table below.
As stated, the maximum value of a vertical spread is the
difference between the two strikes while the minimum value of
the spread is, of course, $0. This means that in this strategy,
both the buyer and the seller have a limited, fixed maximum
loss. The buyer can only lose what he spent. So, if the buyer
spent $2.20 to purchase the August 35 – 40 call spread, the most
he can lose is the $2.20 he spent.
For the seller, the maximum loss is the difference between the
maximum value of the spread (difference between the strikes) and
the amount of money received for the sale of the spread. For
example, if you were to sell the August 35 – 40 call spread for
$2.20 then your maximum loss will be $2.80. Remember, t
If YOU Answered YES, Then Start An Online Newsletter…It’s Easy, Here’s How!I’ve always praised the benefits of using a newsletter to promote your music, but this article give a bit more detail into how to go about it.First, there are tons of different providers out there that can send out your email newsletter. Some are expensive while other like cafepress.com allow you to make one free if you sell products through them. Although this isn’t EVERYTHING you could do it is a good starting place.Define the letter – is it going to be strictly about your band or other acts in your genre? You might be able to pick up other readers/listeners who weren’t aware of your music, but know other acts if you go broader.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
How to Improve Your Link Popurlarity on a Tight Budget
There are a lot of different ways to improve your link pop that don't cost a cent.Unfortunately, these methods can be very time-consuming. But, you get what you put into it. And even if you only spend an hour a day constantly striving to increase your PR, it will be an hour well spent.First, email all the websites you can and simply ask for a link. You'll be surprised at how many people say yes. Politely explain that you'd like to increase your traffic, and explain why you think his or her site's users have something to gain from visiting your homepage. Enclose a pre-made html coded link so that if they agree, it's a simple cut-and-paste job.Next, start on your linking campaign. Again, try emailing webmaste
A vertical spread is constructed by the purchase of a call (orThere are a lot of different ways to improve your link pop that don't cost a cent.Unfortunately, these methods can be very time-consuming. But, you get what you put into it. And even if you only spend an hour a day constantly striving to increase your PR, it will be an hour well spent.First, email all the websites you can and simply ask for a link. You'll be surprised at how many people say yes. Politely explain that you'd like to increase your traffic, and explain why you think his or her site's users have something to gain from visiting your homepage. Enclose a pre-made html coded link so that if they agree, it's a simple cut-and-paste job.Next, start on your linking campaign. Again, try emailing webmaste
put) and the sale of a call (or put) in the same stock and in
the same month. The only difference between the two options is
the strike price. For instance, a vertical spread can be
constructed by purchasing the IBM June 55 call while selling the
June IBM 60 call. This trade would be called the IBM June 55 -
60 call spread. Similarly, a purchase of the IBM July 45 put and
sale of the IBM July 60 put would be called the IBM July 45 – 60
put spread.
The key to the construction of vertical spreads is that you
choose the options that are in the same stock, same month, but
different strikes and in a 1 to 1 ratio. That is, you must
purchase one option for every one you sell or sell one option
for every one you buy.
Value and the Vertical Spread
A vertical spread’s maximum value is the difference between the
two strikes. For example, the maximum value of the June 55 – 60
call spread is $5.00. [60 – 55] = $5.
Using the June 55 – 60 call spread example, we will set the date
to June expiration on Friday. On that day, all the June options
will expire and the options will be worth parity, as all of the
extrinsic value will have eroded away.
Where does the spread get its value? Basically, from its two
components - the call (or put) you buy or the call (or put) you
sell. Let’s look at the spread’s value with a couple of
different closing stock prices. If the stock closes at $55, then
both the 55 strike and the 60 strike will be out of the money
and thus worthless. The value of the spread will be zero as both
options are worth $0. If the stock closes at $57.50, the June 55
calls will be worth $2.50. The June 60 calls will be out of the
money and thus worthless, therefore the spread will be worth
$2.50 (June 55 call $ 2.50 – June 60 call $0).
If the stock closes at $60.00, then the June 55 calls will be
worth $5.00. Meanwhile, the June 60 calls will be worth $0. This
means that the spread will be worth $5.00 (June 55 call $ 5.00 -
June 60 call $0). This is the maximum value of the spread. Note
that the maximum value is identical to the difference between
the strikes.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
Cover Letters, Resumes and the Job Hunter - What's it All About?
Any good job hunter needs a resume package. The cover letter and resume always go together and do the same basic thing in slightly different ways. A job hunter without both of them will probably not get very far in the search for a good career position.With that in mind, let’s take a look at what these crucial documents should do for you. The first part, the cover letter, is a short one page letter consisting of three or four paragraphs. It serves as an introduction to the resume. It is the part that will always be seen by the gatekeeper.The second part is the resume itself. Many job hunters make the mistake of thinking they can just leave a resume without a cover letter. That is like putting on a suit and tie,
on of vertical spreads is that youAny good job hunter needs a resume package. The cover letter and resume always go together and do the same basic thing in slightly different ways. A job hunter without both of them will probably not get very far in the search for a good career position.With that in mind, let’s take a look at what these crucial documents should do for you. The first part, the cover letter, is a short one page letter consisting of three or four paragraphs. It serves as an introduction to the resume. It is the part that will always be seen by the gatekeeper.The second part is the resume itself. Many job hunters make the mistake of thinking they can just leave a resume without a cover letter. That is like putting on a suit and tie,
choose the options that are in the same stock, same month, but
different strikes and in a 1 to 1 ratio. That is, you must
purchase one option for every one you sell or sell one option
for every one you buy.
Value and the Vertical Spread
A vertical spread’s maximum value is the difference between the
two strikes. For example, the maximum value of the June 55 – 60
call spread is $5.00. [60 – 55] = $5.
Using the June 55 – 60 call spread example, we will set the date
to June expiration on Friday. On that day, all the June options
will expire and the options will be worth parity, as all of the
extrinsic value will have eroded away.
Where does the spread get its value? Basically, from its two
components - the call (or put) you buy or the call (or put) you
sell. Let’s look at the spread’s value with a couple of
different closing stock prices. If the stock closes at $55, then
both the 55 strike and the 60 strike will be out of the money
and thus worthless. The value of the spread will be zero as both
options are worth $0. If the stock closes at $57.50, the June 55
calls will be worth $2.50. The June 60 calls will be out of the
money and thus worthless, therefore the spread will be worth
$2.50 (June 55 call $ 2.50 – June 60 call $0).
If the stock closes at $60.00, then the June 55 calls will be
worth $5.00. Meanwhile, the June 60 calls will be worth $0. This
means that the spread will be worth $5.00 (June 55 call $ 5.00 -
June 60 call $0). This is the maximum value of the spread. Note
that the maximum value is identical to the difference between
the strikes.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
Find Items to Sell on eBay - 8 Great Tips
Selling on eBay is not that difficult but finding a good source of product can be time consuming. This list of 8 product sources might get you thinking in the right direction so that you always have product to sell.Home - Look around the house for items that you don’t want but still have value. Don’t select junk. This needs to be something other people will want but you have no use for anymore.Collectables – If you like collecting something then most likely someone else enjoys collecting the same items. I started selling baseball cards on eBay back in 1997 because I had a good collection of old cards.Consumables – This is always a good product category because you can get a lot of repeat business. Do you have
ay. On that day, all the June optionsSelling on eBay is not that difficult but finding a good source of product can be time consuming. This list of 8 product sources might get you thinking in the right direction so that you always have product to sell.Home - Look around the house for items that you don’t want but still have value. Don’t select junk. This needs to be something other people will want but you have no use for anymore.Collectables – If you like collecting something then most likely someone else enjoys collecting the same items. I started selling baseball cards on eBay back in 1997 because I had a good collection of old cards.Consumables – This is always a good product category because you can get a lot of repeat business. Do you have
will expire and the options will be worth parity, as all of the
extrinsic value will have eroded away.
Where does the spread get its value? Basically, from its two
components - the call (or put) you buy or the call (or put) you
sell. Let’s look at the spread’s value with a couple of
different closing stock prices. If the stock closes at $55, then
both the 55 strike and the 60 strike will be out of the money
and thus worthless. The value of the spread will be zero as both
options are worth $0. If the stock closes at $57.50, the June 55
calls will be worth $2.50. The June 60 calls will be out of the
money and thus worthless, therefore the spread will be worth
$2.50 (June 55 call $ 2.50 – June 60 call $0).
If the stock closes at $60.00, then the June 55 calls will be
worth $5.00. Meanwhile, the June 60 calls will be worth $0. This
means that the spread will be worth $5.00 (June 55 call $ 5.00 -
June 60 call $0). This is the maximum value of the spread. Note
that the maximum value is identical to the difference between
the strikes.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
Top 9 Reasons Companies Should Blog
Below are the top 9 reasons why companies should blog.1. They the perfect public relations tool. Their personal nature gives you and your organization a unique voice online - a voice heard by the people who matter - your customers and clients, other bloggers and the media.2. Blogs act as instant-feedback mechanisms. They allow readers to respond to your posts via the comments section or link to them on their own blogs using Trackback. These features provide near real-time feedback on ideas, opinions and issues that affect them, or highlight and address new or existing problems.3. Blogs help to position you and your company as experts and leaders in your industry.4. Their simplicity and addictive nature
he stock closes at $57.50, the June 55Below are the top 9 reasons why companies should blog.1. They the perfect public relations tool. Their personal nature gives you and your organization a unique voice online - a voice heard by the people who matter - your customers and clients, other bloggers and the media.2. Blogs act as instant-feedback mechanisms. They allow readers to respond to your posts via the comments section or link to them on their own blogs using Trackback. These features provide near real-time feedback on ideas, opinions and issues that affect them, or highlight and address new or existing problems.3. Blogs help to position you and your company as experts and leaders in your industry.4. Their simplicity and addictive nature
calls will be worth $2.50. The June 60 calls will be out of the
money and thus worthless, therefore the spread will be worth
$2.50 (June 55 call $ 2.50 – June 60 call $0).
If the stock closes at $60.00, then the June 55 calls will be
worth $5.00. Meanwhile, the June 60 calls will be worth $0. This
means that the spread will be worth $5.00 (June 55 call $ 5.00 -
June 60 call $0). This is the maximum value of the spread. Note
that the maximum value is identical to the difference between
the strikes.
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wid
Direct Marketing for Non-Profit Groups Considered
If you run a non-profit business then perhaps you should try direct marketing and direct-mail to get volunteers and increase donations to your non-profit. Direct-mail and direct marketing does not just work for businesses, as it is a way to catch people in their homes who read direct-mail and direct marketing packages.Some people think that direct mail and direct marketing are mostly for local small businesses in the area to send out to high net worth individuals in specific demographics within target areas of zipcodes. It is true that direct-mail and direct marketing packages do work well for many types of small businesses in both the service sector and the retail sector. But direct marketing and direct-mail is not just
.If you run a non-profit business then perhaps you should try direct marketing and direct-mail to get volunteers and increase donations to your non-profit. Direct-mail and direct marketing does not just work for businesses, as it is a way to catch people in their homes who read direct-mail and direct marketing packages.Some people think that direct mail and direct marketing are mostly for local small businesses in the area to send out to high net worth individuals in specific demographics within target areas of zipcodes. It is true that direct-mail and direct marketing packages do work well for many types of small businesses in both the service sector and the retail sector. But direct marketing and direct-mail is not just
As the stock goes higher, the June 60 call becomes in-the-money
and gains intrinsic value. Now, for every penny that the stock
increases in value, the June 55 calls and June 60 calls gain
value equally, keeping the $5.00 spread between the two strikes
constant. To see this, refer to the Table below.
The difference between the strikes is the maximum value of all
vertical spreads irregardless of the distance between the two
strikes. It does not matter whether the spread is $5.00 wide,
$10.00 wide, $20.00 wide, or even $50.00 wide; its maximum value
is the difference between the two strikes. Further, the vertical
spread’s maximum value (the difference between the two strikes)
holds true for vertical put spreads as well as vertical call
spreads. Look at our other example, the July 45 – 60 put spread.
Again we set time forward to Friday, July expiration. We set the
stock closing price at $60.00. At $60.00, both the July 45 puts
and the July 60 puts will be out of the money and thus
worthless. With both the July 45 puts and July 60 puts
worthless, the spread is also worthless (July 60 put $0 – July
45 put $0). If the stock finishes at $52.50, then the July 60
puts will be worth $7.50 while the July 45 puts will still be
worthless. In this scenario the July 45 – 60 put spread will be
worth $7.50 (July 60 puts $7.50 – July 45 puts $0). If the stock
finishes at $45.00, then the July 60 puts will be worth $15.00
while the July 45 puts will be worth $0.
At this level, the spread will be worth $15.00 (July 60 puts
$15.00 – July 45 puts $0). This is the maximum value of the
spread. As you can see it is identical to the $15.00 difference
between the strikes. As the stock goes lower, the July 45 puts
become in-the-money and gain intrinsic value. Now, for every
penny that the stock decreases in value, the July 60 puts and
the July 45 puts will gain value equally, keeping the $15.00
spread between the two strikes constant. To see this, refer to
the table below.
As stated, the maximum value of a vertical spread is the
difference between the two strikes while the minimum value of
the spread is, of course, $0. This means that in this strategy,
both the buyer and the seller have a limited, fixed maximum
loss. The buyer can only lose what he spent. So, if the buyer
spent $2.20 to purchase the August 35 – 40 call spread, the most
he can lose is the $2.20 he spent.
For the seller, the maximum loss is the difference between the
maximum value of the spread (difference between the strikes) and
the amount of money received for the sale of the spread. For
example, if you were to sell the August 35 – 40 call spread for
$2.20 then your maximum loss will be $2.80. Remember, t
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