When to use
Normally entered when market is near B and shows signs of increasing activity, with greater probability to upside (for example, if last major move was down, followed by stagnation).

Profit Characteristics
Profit limited on downside (to net credit taken in when position was set up in call-vs. call version) but open- ended in rallying market.

Loss Characteristics
Maximum loss, in amount of B - A - initial credit, is realized if market is at B at expiration. This loss is less than for equivalent long straddle, the trade-off for sacrificing profit potential on the downside.

Decay Characteristics
If market is at B, loss from decay will accelerate the most rapidly Therefore, you may want to exit early if market is near B as you enter last month. At A, you have the greatest rate of profit accrual by decay of short option.

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