When to use
If market is within or near A-B range and has been stagnant.  If market explodes either way, you make money; if market continues to stagnate, you lose less than with a long straddle.

Profit Characteristics
Profit open - ended in either direction.  With put A vs. call B version (most common), break-even is at A minus cost of spread.  However, spread is usually not held to expiration.

Loss Characteristics
Loss limited most common version, loss is equal to net cost of position.  Maximum loss incurred if, at expiration, market is between A and B.

Decay Characteristics
Decay accelerates as options approach expiration but not as rapidly as with long straddle.  To avoid largest part of decay, the position is normally taken off prior to expiration.

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