If someone could take a look at this chart and help me out it would be greatly appreciated. I have highlighted a couple areas that I am hoping to get person to person clarification on. I know the investopedia definition of Delta, and Theta as it pertains to options, and I get the concepts. However I look at this image and I try to understand it within the context of what I am looking to do.
For this Bear Call Spread I am using this Fridays expiration. (Friday October 24th 2014)
Netflix is the underlying. Buying the 385 Call selling the 382.5 call. 10 contracts will get 200$ premium while risking 2300 max loss.
Could someone look at this and tell me what they see and think when they look at this particular spread.
Thanks in advance, it will be a huge help to get a human explanation.
EDIT: For purposes of helping me, let me establish where I stand when I look at this potential spread position.
We have the short side being 382.5 so if on Fridays close the underlying is under 382.5 I will get 100% of premium
The 382.5 currently has a 6.26% probability of expiring in the money and the 385 call 4.17%