Looking at the graph of a long call, i believe lower strike calls are more expensive because they require less growth to be in the money.
Put spreads are the reverse in that you buy a put spread when you buy the higher strike put and sell the lower. The same goes with the sell.
“If you pay money for the spread, whether it’s a call spread or put spread, you’re buying the spread… if you receive money for the spread, whether it’s a call spread or a put spread, you’re selling the spread.”
"There’s a ceiling above which the value of a vertical spread cannot rise. That ceiling is the width of the spread or simply the upper strike price minus the lower strike price.”
I noticed the value of an option should be distinguished from our profit. For instance the value of a call option can increase, but my profit decreases if I’m selling it.
This next graph is from MT5 Help topics. The "Bull Call Spread" is the same as the graph below. I put them both to help the reader understand. I actually took the time to draw a buy and sell call on the same graph and add them to get the graph in Fig. 3.4 and the bull spread below. In both cases, the buy was more expensive, and the sell was really cheap, leaving a graph with smaller losses than profit potential. I haven't gotten to the Backspread as seen in the graph. May be tomorrow.
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