Suppose that Amazon is trading at $165. Suppose you buy a call option on Amazon shares (X=160) for $10, and you sell another call option (X=180) on the same stock. Options have same expiry.

1) Assume a rational price for the second call option.

2) Please draw the profit diagram of your portfolio? (Show all the intercepts and inflection points)

3) Is the upside/downside limited or unlimited?

4) Are you bearish/bullish?

5) What is your exact bet?