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The Energy Select Sector SPDR (XLE) is an ETF that tracks oil and propane producers, well drillers, along with other oil service companies. The XLE's traded between $62 and $92 over recent times. We'll use this for our example on spread positions.
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For every penny over the $76 level the stock trades your loss in the $75 call option you sold is offset from your gain in the $76 call option bought.
Because selecting you sold has a better premium compared to the option you bought this is mostly a credit tossed. The difference between the prices of your options is the profit. You're allowed put this money immediately for your pocket.
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