Bull Spread: Buy Call (S=50) On Lower Strike And Sell Call (S=55) On Next Higher Strike
Risk: Limited-downside
Profit Potential: Limited-upside
Equivalent Positions: Bull spread with puts
Follow-up Action: Drop in price-Lock in short side profits and look for recovery on long side
Diagonal Backspread: Sell A Short Term At The Money Call (S=50), And Buy 2 Long Term Calls At The Next
Higher Strike (S=55, T=.5 years)
Risk: Limited-downside & between the strikes
Profit Potential: Unlimited-upside
Equivalent Positions: None
Follow-up Action: None
Bullish Calendar Spread: Buy A Long Term Call (S=45, t=.5), And Sell A Short Term Call (S=45) Against It,
With Strike Below Stock Price
Risk: Limited-upside & downside
Profit Potential: Limited-at strike
Equivalent Positions: None
Follow-up Action: Roll short term call forward
