A BWB structured like this (OTM, for a credit) is somewhat similar to an OTM Credit spread, except that: if the stock starts to move down, it actually makes money (up to a point), with max profit actually at a lower strike (short Put strike) than the current price -one could argue its a Bearish trade then. Whatever, as long as you make money!
Buy 1, sell 2, buy 1 further away and wider.
If the stock rallies, you just keep the credit (like a credit spread).
If the stock goes past the further OTM long strike, it starts to lose money. Of course you might be closing the whole position for a profit once it gets to the 'short strike, so you'd be long gone (unless it does a big gap).
Max risk is the: wide spread - narrow spread (20-10) -Credit (2.14), so 7.86
This is a solid gold strategy, if one takes the time to understand it!
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