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Long Call Vertical

Analyzing the risk profile of a long call vertical

Recap

  • Long call verticals are a bullish strategy
  • Long call verticals have limited profitability and limited risk
  • The most you can lose on a long call vertical is the amount you pay for it
  • Wider verticals carry greater risk, but offer greater profit potential
  • Narrow verticals are very slow moving, but have lower monetary risk
  • Never pay more than the width of the strikes to open a long vertical

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intro to spreads