Expand model tag support: add GLM-5.1, simplify Anthropic IDs, scan tags anywhere in message
- Flink update_bars debouncing - update_bars subscription idempotency bugfix - Price decimal correction bugfix of previous commit - Add GLM-5.1 model tag alongside renamed GLM-5 - Use short Anthropic model IDs (sonnet/haiku/opus) instead of full version strings - Allow @tags anywhere in message content, not just at start - Return hasOtherContent flag instead of trimmed rest string - Only trigger greeting stream when tag has no other content - Update workspace knowledge base references to platform/workspace and platform/shapes - Hierarchical knowledge base catalog - 151 Trading Strategies knowledge base articles - Shapes knowledge base article - MutateShapes tool instead of workspace patch
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description: "A bullish vertical spread buying a near-ATM call at K1 and selling an OTM call at K2 > K1 for a net debit, capping both profit and loss."
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tags: [options, speculation, bullish, vertical-spread]
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---
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# Bull Call Spread
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**Section**: 2.6 | **Asset Class**: Options | **Type**: Speculation
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## Overview
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The bull call spread is a vertical spread consisting of a long position in a close to ATM call option with strike K1, and a short position in an OTM call option with a higher strike K2. This is a net debit trade. The trader's outlook is bullish: the strategy profits if the stock price rises. This is a capital gain strategy.
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## Construction
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- Buy 1 call option at strike K1 (near ATM), paying debit D
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- Sell 1 call option at strike K2 (OTM, K2 > K1), same expiry
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Net debit: D = premium paid for K1 call - premium received for K2 call
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## Payoff Profile
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f_T = (S_T - K1)+ - (S_T - K2)+ - D
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- Breakeven: S* = K1 + D
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- Max profit: P_max = K2 - K1 - D (achieved when S_T >= K2)
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- Max loss: L_max = D (if S_T <= K1 at expiry)
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## Key Conditions / Signals
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- Moderately bullish outlook; expects stock to rise toward or above K2 by expiry
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- Prefer when implied volatility is low (cheaper debit to enter)
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- Lower cost and lower risk than buying a naked call; upside is capped at K2
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## Notes
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Both profit and loss are limited. The maximum gain equals the spread width minus the net debit. This strategy is appropriate when the trader has a directional view but wants to reduce the premium outlay compared to a simple long call.
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