HOW TO CALCULATE VERTICAL SPREAD PROFIT and LOSS – Lesson 14

OPTIONS IS NOT A GUESSING GAME ! You always know the MAXIMUM profit you can make AND the MAXIMUM amount you can lose before opening an order! HOW TO CALCULATE BULL CALL VERTICAL SPREAD – PROFIT MAXIMUM PROFIT (Cannot make more than this): 1. Must be in-the-money 2. Subtract the OPEN premium from the CLOSE premium X 100 Example to calculate profit: Stock Price: $58.15OPEN … Continue reading HOW TO CALCULATE VERTICAL SPREAD PROFIT and LOSS – Lesson 14