This strategy involves the purchasing and selling of call options. Investors who utilize this strategy anticipate the marketable asset to increase in value, but not to an extreme.

The Strategy: The investor purchases call options at a specific strike price, and sells an identical number of calls at a higher strike price.

If the asset increases above the shorted call options, he has call options he may execute at a lower strike price to sell to the holder, hence, earning the difference between the strike prices per share.