[my xls is here https://trtl.bz/2NKCh3H] A vertical spread trade takes a position in two or more options of the same type (i.e., two or more calls, or two or more puts). Both the bull and bear spread are capped on the upside. The BULL SPREAD buys a call with a lower strike price partially funds the purchase by writing (ie, selling) a call with a higher strike price; if the bull spread is created with puts, then it generates an initial cash inflow. The BEAR spread buys a put with a higher strike price and partially funds it by writing (ie, selling) a put with a lower strike price; if the bear spread is created with calls, then it generates an initial cash inflow. Discuss this video here in our FRM forum: https://trtl.bz/2Hnrj4c.