Strategy - BULL SPREAD (details below)

• bullish
  • very bullish
  • moderately bullish + certain that the market will not fall
  • moderately bullish + fairly certain that the market will not fall
  • bearish in immediate near-term (weeks) + bullish in longer term (months)
• bearish
• neutral
• volatile

Strategy Implementation
Call option is bought with a strike price of a and another call option sold with a strike of b, producing a net initial debit,
OR
Put option is bought with a stike of a and another put sold with a strike of b, producing a net initial credit.

Upside Potential
Limited in both cases -
Calls: difference between strikes minus initial debit
Puts: net initial credit
Maximum profit if market at expiry is above the higher strike.

Downside Risk
Limited in both cases -
Calls: net initial debit
Puts: difference between strikes minus initial credit
Maximum loss if at expiry market is below the lower strike.

Margin
Possibility for margin requirements to be off-set.

Comment
Time value erosion not too significant due to the balanced position. .