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Use the original same-expiry pair
The one-unit position buys the strike-110 put and writes the strike-90 put. Net premium paid is 14−6=8. Holder payouts must be formed for puts as strike minus terminal price, subject to a zero floor.
Subtract the written put
Payoff is max(110−S,0)−max(90−S,0). It is 20 for S≤90, 110−S between 90 and 110, and zero for S≥110.
Inspect the premium-adjusted result
| Terminal price | Combined payoff | Simple profit |
|---|---|---|
| 0 | 20 | 12 |
| 90 | 20 | 12 |
| 100 | 10 | 2 |
| 102 | 8 | 0 |
| 110 | 0 | -8 |
| 130 | 0 | -8 |
Keep direction and cost separate
Simple profit crosses zero at S=102, has cap 12 below the lower strike and floor −8 above the higher strike. The downward payoff direction comes from the put legs; the premium changes the profit level without changing their payoff regions.