What is the risk for this option?

Discussion in 'Options' started by oem7110, Oct 18, 2014.

  1. oem7110

    oem7110

    Short CALL (OCT) at 10000, receiving 400 premium
    Long CALL (NOV) at 10000, paying 500 premium.

    At the expired date for OCT,
    If price closes at 9000, and I close all contacts, then
    Short CALL (OCT) at 10000, which would become 0
    Long CALL (NOV) at 10000, for the worst case, do I lose maximum (400 - 500) = $100?

    If price closes at 11000, and I close all contacts, then
    Short CALL (OCT) at 10000, which would gain 1000 points
    Long CALL (NOV) at 10000, which would lose 1000 points
    which would cancel each other without risk?
    for the best case, do I gain maximum (500 - 400) = $100?

    Does anyone have any suggestions?
    Thanks in advance for any suggestions