When to use
Usually entered when market is near A and user expects a slight rise in the market but sees a potential for sell-off.  One of the most common spreads, seldom done more than 1:3 (two excess shorts) because of upside risk.

Profit Characteristics
Maximum profit, in amount of B - A - net cost of position (for call vs. call version), realized if market is at B at expiration.

Loss Characteristics
Loss limited on downside (to net cost of position in call vs. call) but open-ended if market rises.  Rate of loss, if market rises beyond B, is proportional to number of excess shorts in position.

Decay Characteristics
If market is at B, profit from option decay accelerate the most rapidly with passage of time.  at A, you have the greatest rate of loss accrual by decay of long option.

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