Sell an out-of-the-money put and an out-of-the-money call spread in one trade, collecting a net credit. It profits while the stock stays in a broad range; the long call caps the upside risk. When the credit received exceeds the width of the call spread, there is no risk at all to the upside.
Premiums start as Black-Scholes model values — overwrite them with your broker’s real quotes for exact numbers.
| price | today | +4d | +8d | +11d | +15d | +19d | +23d | +26d | expiry |
|---|---|---|---|---|---|---|---|---|---|
| 130.0 | -257 | -260 | -262 | -263 | -265 | -265 | -266 | -266 | -266 |
| 125.0 | -244 | -249 | -254 | -257 | -261 | -264 | -265 | -266 | -266 |
| 120.0 | -214 | -221 | -229 | -236 | -246 | -255 | -263 | -265 | -266 |
| 115.0 | -159 | -165 | -174 | -182 | -196 | -213 | -235 | -254 | -266 |
| 110.0 | -81 | -80 | -81 | -83 | -89 | -99 | -116 | -141 | -266 |
| 105.0 | -9 | 4 | 19 | 30 | 46 | 64 | 85 | 111 | 234 |
| 100.0 | 0 | 26 | 54 | 77 | 110 | 148 | 189 | 219 | 234 |
| 95.0 | -114 | -86 | -57 | -34 | 0 | 37 | 79 | 117 | 234 |
| 90.0 | -379 | -361 | -343 | -329 | -311 | -293 | -276 | -267 | -266 |
| 85.0 | -773 | -767 | -762 | -759 | -757 | -757 | -759 | -762 | -766 |
| 80.0 | −1.2k | −1.2k | −1.2k | −1.2k | −1.2k | −1.3k | −1.3k | −1.3k | −1.3k |
| 75.0 | −1.7k | −1.7k | −1.7k | −1.7k | −1.7k | −1.8k | −1.8k | −1.8k | −1.8k |
| 70.0 | −2.2k | −2.2k | −2.2k | −2.2k | −2.2k | −2.3k | −2.3k | −2.3k | −2.3k |
Dollar P&L for the whole position. Pre-expiry cells are model values (constant IV); real marks will differ with volatility and skew.
An options position is a view on the company underneath. Our SEC-grounded verdicts, quality scores and filings coverage are free for every US-listed name.
Educational model, not trade advice. Options involve substantial risk and are not suitable for every investor — read the OCC’s Characteristics and Risks of Standardized Options. Model values use Black-Scholes with your inputs (constant volatility, European exercise, no dividends) and will differ from live market prices.
Research and education only — not financial advice. TENKis not a registered investment adviser or broker-dealer and gives no personalized advice. Every call is impersonal — identical for all users, generated on a schedule from SEC filings plus a delayed/third-party price feed — may be wrong or out of date, and is not a recommendation to buy or sell any security. The operator and an affiliated trading operation may hold or trade the securities TENK rates; see Disclosures. Past performance does not guarantee future results. Do your own research.