When to use:

When you are bullish on the market and uncertain about volatility. Normally this position is initiated as a follow-up to strategy. Its risk/reward is the same as a LONG FUTURES except that there is a flat area of little or no gain/loss.

Profit Characteristics:

Profit increases as market rises past the long call. Profit expiration is exercise price of B plus or minus price received or paid to initiate positions.

Loss Characteristics:

Loss increases as the market falls past the short put. Loss at expiration is open-ended and is based on the exercise price A plus or minus price received or paid to initiate position.

Decay Characteristics:

Depending on the underlying futures, time decay works for you (if futures are lower) or against you (if futures are higher).