Calculate max loss and max profit for a basic call debit spread.
worked-steps stat-tile-trio comparison Diego considers buying the 50 call and selling the 55 call in the same expiration for a net debit of $2.00. Call debit spread math: max loss = debit paid; max value = strike width; max profit = strike width - debit, times 100. The common trap is calling the spread cheap without naming what was sold. The short call caps gains above the upper strike. Net debit $2.00 x 100 = $200 paid for one spread. The debit is the maximum theoretical loss before fees if both calls expire worthless. Strike width $55 upper strike -…
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