![](\"https:\/\/i0.wp.com\/www.mainstbeatswallst.com\/wp-content\/uploads\/2017\/03\/spread.png?resize=690%2C331\")
<\/a><\/p>\nThings that can be gleaned from the Call Spread graph: The losses and the gains are limited this allows for an easy evaluation of the risk and reward, aka the possible profit and loss, hence the name of this type of graph.<\/p>\n
The selling of the higher price call limits the max profit that is attainable but it also reduces the cost of the long call that was bought.<\/p>\n
Spreads are very useful strategies for hedging, limiting losses, or reducing costs.<\/p>\n
<\/p>\n
Bob Bullock<\/p>\n
Contributing Writer<\/p>\n","protected":false},"excerpt":{"rendered":"
Spreads are the term for being long a put or call and also being short the same type of option at a different strike price. When we combine the long call:\u00a0 and the short call:\u00a0 We get a graph for a Call Spread: Things that can be gleaned from the Call Spread graph: The losses […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"jetpack_post_was_ever_published":false,"footnotes":""},"class_list":["post-2804","page","type-page","status-publish","hentry"],"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/P75MP0-Je","jetpack-related-posts":[],"_links":{"self":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/2804","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages"}],"about":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/types\/page"}],"author":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=2804"}],"version-history":[{"count":6,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/2804\/revisions"}],"predecessor-version":[{"id":3260,"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=\/wp\/v2\/pages\/2804\/revisions\/3260"}],"wp:attachment":[{"href":"https:\/\/www.mainstbeatswallst.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=2804"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}
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