What is a Call Spread? Financial Options - Financial Derivatives

[@robinsaini5842]

Thank you Sir. Really appreciate your efforts to impart this valuable knowledge.

[@PBoyle]

Thanks and welcome

[@fuhat1040]

@@PBoyle make a n audio book

[@cameronvincent]

Great video

[@marcellosansonetti7951]

Patrick, Thanks you very very much for sharing your knowledge. I would like to ask you one thing about options spread. Buying/Selling options spread is a well known trading strategy. What I see when choosing this spreads among the various strike prices is that the price of it (eg. Short Call Spread: Sell lower strike and Buy higher strike) is always similar among the different strikes, keeping the same distance in strikes( E.G.: A call spread among strike 10$ and 12$, has the same value of a strike among 12$ and 14$ (beside bid/ask spread)). My question: Don't you think that the price of the spreads depends more or solely on the shape of the skew (or smirk) more than on the implied volatility of the ITM option? Similarly: A Call Spread for stock that have ITM Implied volatility of 25% has the same value if the stock has an increase in implied volatility to 35% , because all the strikes will see an increase in implied volatility, so the Spread at the end will have the same value.

[@marcellosansonetti7951]

sorry...an increase of stock option implied volatility to 35%...