5.4.5
Dono credit spreads hain — tumhe upfront paisa milta hai ek limited risk lene ke badle mein. Ye directional betting ke calm, income-focused cousins hain.
Bull put spread kehta hai: "Mera bet hai ki stock UP ya flat rahega — mujhe abhi pay karo, agar main sahi raha toh cash mere paas rahega." Bear call spread kehta hai: "Mera bet hai ki stock DOWN ya flat rahega — mujhe abhi pay karo, agar main sahi raha toh cash mere paas rahega."
WHY : ek option sell karne se premium milta hai, lekin ek naked short option mein scary unlimited risk hota hai. Isliye tum ek sasta, further-out option khareedte ho insurance ke taur par . Net result: aaj tumhare pocket mein paisa, aur worst case capped.
Ek credit spread ek two-leg position hai jahan tum ek zyada expensive option sell karte ho aur usi type aur expiry ka ek sasta option buy karte ho. Net premium tumhare account mein aata hai (ek credit ).
Do cheezein zaroor yaad rakho:
Sold leg = wo option jisme tum short ho = jise tum expire worthless karna chahte ho.Bought leg = wo option jisme tum long ho = tumhara protection / insurance .
Dono strikes ke beech ki distance width hai, W = ∣ K high − K low ∣
Definition Bull put spread
Higher strike K S sell karo (premium P S
Lower strike K B buy karo (premium P B K B < K S
Net credit mila: C = P S − P B > 0
WHY ye stock rise hone par profit deta hai?
Jo put tumne sell ki hai wo stock ke chadhne par value lose karti hai (log nahi chahte ki high price par sell karne ka right ho jab price upar ja rahi ho). Kyunki tum net short puts ho, rising ya flat price = credit tumhare paas rehta hai.
Maano S T max ( K − S T , 0 ) K S short ho aur K B long ho, toh option legs ka payoff:
Legs ( S T ) = long max ( K B − S T , 0 ) − short max ( K S − S T , 0 )
Total profit = legs payoff + credit collected:
Π ( S T ) = max ( K B − S T , 0 ) − max ( K S − S T , 0 ) + C
Teen regions (har ek kyun?):
Region
Puts ki state
Legs value
Profit
S T ≥ K S dono worthless
0 + C
K B ≤ S T < K S sirf sold put ITM
− ( K S − S T ) C − ( K S − S T )
S T < K B dono ITM, offset
− ( K S − K B ) C − W
Definition Bear call spread
Lower strike K S sell karo (C S
Higher strike K B buy karo (C B K B > K S
Net credit : C = C S − C B > 0
WHY ye stock fall hone par profit deta hai?
Jo call tumne sell ki hai wo stock ke girne par value lose karti hai. Net short calls ⇒ falling ya flat price = credit tumhare paas rehta hai.
Long call ki value = max ( S T − K , 0 ) K S K B
Π ( S T ) = long max ( S T − K B , 0 ) − short max ( S T − K S , 0 ) + C
Region
Calls ki state
Legs value
Profit
S T ≤ K S dono worthless
0 + C
K S < S T ≤ K B sirf sold call ITM
− ( S T − K S ) C − ( S T − K S )
S T > K B dono ITM, offset
− ( K B − K S ) C − W
Worked example ₹100 wale stock par bull put95-put ko ₹4 mein sell karo, 90-put ko ₹1.5 mein buy karo. Toh C = 4 − 1.5 = 2.5 W = 95 − 90 = 5
Net credit kyun? Sold leg bought leg se zyada mehengi hai → paisa andar aaya.Max profit = C = ₹2.5 ≥ 95 Kyun? Dono puts expire worthless, pura credit tumhare paas.Max loss = W − C = 5 − 2.5 = ₹2.5 ≤ 90 Kyun? Dono puts fully ITM, spread − 5 + 2.5 Breakeven = 95 − 2.5 = ₹92.5 Kyun? 92.5 par ₹2.5 credit exactly ₹2.5 intrinsic loss ko sold put par cancel karta hai.
Worked example ₹100 wale stock par bear call105-call ko ₹3 mein sell karo, 110-call ko ₹1 mein buy karo. Toh C = 2 W = 5
Max profit = ₹2 ≤ 105 Kyun? Dono calls worthless; credit rakho.Max loss = 5 − 2 = ₹3 ≥ 110 Kyun? Spread − 5 + 2 Breakeven = 105 + 2 = ₹107 Kyun? Sold call 107 par ₹2 intrinsic lose karta hai, credit wipe ho jaata hai.
Worked example Forecast-then-VerifyTumhara maanna hai ki Nifty 22000 se neeche nahi jaayega. 22000-put ₹150 mein sell karo, 21800-put ₹90 mein buy karo.
Forecast: credit? max loss? breakeven?
Verify: C = 60 W = 200 = 200 − 60 = 140 = 22000 − 60 = 21940 ≥ 22000
Common mistake "Credit mila = mera max profit unlimited hai."Kyun sahi lagta hai: paisa mila, free money jaisa lagta hai jo sirf badhega.
Fix: Max profit fixed hai credit C defined-risk, defined-reward hain.
Common mistake "Bull put ka matlab hai main chahta hoon ki price meri strike ko touch kare."Kyun sahi lagta hai: strike hi wo number hai jis par tum focus karte ho.
Fix: Tum chahte ho ki S T upar rahe taaki dono puts expire worthless ho jaayein. Sold strike ke neeche touch/cross karna profit khaana shuru karta hai.
Common mistake Ye confuse karna ki kaunsi strike sell hui aur kaunsi buy hui.Fix mnemonic neeche. Ek credit spread mein tum hamesha closer (nearer-the-money, zyada valuable) option sell karte ho aur door wala buy karte ho. Rich sold, cheap bought ⇒ credit.
Common mistake "Max loss = width."Fix: Max loss = W − C W
Intuition Ye mirror images hainBull put puts use karta hai jo price ke neeche-ish hote hain, bearish tilt calls use karta hai jo price ke upar-ish hote hain. DONO mein:
Tum near strike sell karte ho, far strike buy karte ho .
Profit agar price sold strike ke "safe" side par rahe.
MaxProfit = C MaxLoss = W − C risk/reward = C W − C
Recall Feynman: 12-saal ke bacche ko samjhaoSocho tum ek chhoti bet stall chalate ho. Tum apne dost se waada karte ho ki agar uske toy ki price ₹95 se neeche giri toh tum wapas kharidoge — aur wo tumhe ₹4 deta hai us waade ke liye (yahi hai put sell karna ). Lekin khud ko bachane ke liye, tum wahi waada kisi aur se karte ho lekin sirf ₹90 se neeche ke liye, unhe ₹1.5 dete ho (put buy karna ). Aaj tumhare paas ₹2.5 hain. Agar toy mehengi rahe (₹95 se upar), koi claim nahi karta aur tumhare ₹2.5 rahe — khush! Agar wo bahut crash kare (₹90 se neeche), tumhare dono waade cancel out ho jaate hain sirf ek fixed ₹5 gap ko chhodke, toh tum zyada se zyada ₹2.5 lose karte ho. Yahi hai bull put spread : abhi cash lo, chhota capped risk, aur jab cheezein UP rahein tum jeette ho. Bear call spread bilkul yahi trick hai ulti — jab cheezein DOWN rahein tum jeette ho.
Mnemonic Direction aur legs yaad rakho"Credit = Sell Near, Buy Far."
Bull Put → BP → Bullish, Puts . (Dono same letters se shuru hote hain jaise vibe.)Bear Call → BC → Bearish, Calls ."Put a floor when Bullish, Cap the sky when Bearish. "
Bull put aur bear call kis type ke spread hain (credit/debit)? Dono credit spreads hain — tumhe net premium upfront milta hai.
Bull put spread mein kaunsa leg sell karte ho? Higher-strike put (zyada expensive wali); lower-strike put buy karte ho.
Bear call spread mein kaunsa leg sell karte ho? Lower-strike call (zyada expensive); higher-strike call buy karte ho.
Kisi bhi credit spread ka max profit? Mila hua net credit C
Credit spread ke liye max loss formula? W − C W
Bull put spread ka breakeven? K S − C
Bear call spread ka breakeven? K S + C
Bull put max profit kab achieve hota hai? Jab S T ≥
Bear call max profit kab achieve hota hai? Jab S T ≤
Protective far leg bilkul kyun buy karte hain? Naked short option ke otherwise unlimited/large loss ko cap karne ke liye — ye risk define karta hai.
Bull put spread tab profit deta hai jab price kya kare? Upar jaaye ya flat rahe (sold strike ke upar).
Bear call spread tab profit deta hai jab price kya kare? Neeche jaaye ya flat rahe (sold strike ke neeche).
Credit spread ka risk-to-reward ratio? C W − C
Credit vs Debit Spreads Bull Call and Bear Put Spreads (debit-spread counterparts)Vertical Spreads Overview Selling Puts vs Naked Puts Option Payoff Diagrams Implied Volatility and Premium Iron Condor (bull put + bear call combined)
Credit spread: sell dear, buy cheap
Bought leg: long option, insurance
Profit if stock up or flat
Profit if stock down or flat
