As I talked about in the Trading Room class, there are 4 different ways to put on this trade.  There is no difference in risk/reward, break-even points, etc. in any of the combinations below.

Bull Call spread 310/320  bear call spread 340/350
bull put spread 310/320   bear put spread 340/350
bull call spread 310/320  bear put spread 340/350
Bull put spread 310/320   bear call spread 340/350

All these trades have the same risk graph and all will need the same treatment at expiration. Any option spreads that are in the money will automatically be exercised at expiration.  For instance, if you had a bull call spread at 310/320 and the stock closed at 330, you would buy the stock at 310 and sell immediately at 320.  You would make $10 on the stock minus you original debit (usually $4).  This is done automatically over the weekend.

1. If the stock closes between 320-340, do nothing.  All options will either expire worthless (If you used credit spreads) of will be exercised at full profit.

2. If the stock closes above 350 or below 310, do nothing.  All options will either expire worthless or will be exercised at full loss. ($2.45 on this trade)

3. If the stock looks to close between 310-320, you will need to close out that leg of the trade (buy the option you sold and sell the option you bought) and let the other leg expire worthless or be exercised at full profit.

4. If the stock looks to close between 340-350, you will need to close out that leg of the trade (buy the option you sold and sell the option you bought) and let the other leg expire worthless or be exercised at full profit.

Hopefully this helps!