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+Chapter 23: Spreads Combining Calls and Puts 343 
+Example: A trader buys an XYZ call bull spread for 5 points. The spread uses the 
+January 70 calls and the January 80 calls. Later, XYZ advances to a price of 88, but 
+there is still a good deal of time remaining in the options. Perhaps the spread has 
+widened out only to 7 points at that time. The trader finds it somewhat disappoint­
+ing that the spread has not widened out to its maximum profit potential of 10 points. 
+However, this is a fairly common occurrence with bull and bear spreads, and is one 
+of the factors that may make them less attractive than outright call or put purchases. 
+In any case, suppose the following prices exist: 
+January 80 put, 5 
+January 70 put, 2 
+We can use these put prices to verify that the call spread is "in line." Notice that the 
+put spread is 3 points and the call spread is 7 points (both are the January 70-January 
+80 spread). Thus, they add up to 10 points the width of the strikes. When that 
+occurs, we can conclude that the spreads are "in line" and are trading at theoretical­
+ly correct prices. 
+Knowing this information doesn't help one make any more profits, but it does 
+provide some verification of the prices. Many times, one feels frustrated when he 
+sees that a call bull spread has not widened out as he expected it to. Using the put 
+spread as verification can help keep the strategist "on track" so that he makes ration­
+al, not emotional, decisions. 
+Now let's look at a similar example, in which perhaps the puts can be used to 
+lock in profits on a call bull spread. 
+Example: Using the same bull spread as in the previous example, suppose that one 
+owns an XYZ call bull spread, having bought the January 70 call and sold the January 
+80 call for a debit of 5 points. Now assume it is approaching expiration, and the stock 
+is once again at 88. At this time, the spread is theoretically nearing its maximum price 
+of 10. However, since both calls are fairly deeply in-the-money, the market-makers 
+are making very wide spreads in the calls. Perhaps these are the markets, with the 
+stock at 88 and only a week or two remaining until expiration: 
+Coll 
+January 70 call 
+January 80 call 
+Bid Price 
+17.50 
+8.80 
+Asked Price 
+18.50 
+8.20 
+If one were to remove this spread at market prices, he would sell his long 
+January 70 call for 17.50 and would buy his short January 80 call back for 8.20, a cred-