Static Example
Illustrative math for a single 1-lot spread. Figures are rounded for clarity; not investment advice.
| Short/Long Strikes | Width | Credit | Max Loss | Theoretical Return on Risk |
|---|---|---|---|---|
| 100 / 95 | $5.00 | $1.50 | $3.50 | ≈ 42.9% (1.50 ÷ 3.50) |
Max loss occurs if price is at or below the long strike at expiration (ignoring fees). Managing early can reduce realized risk.