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Options-structure walk-through for a client

A client asked about a structure and you need a clear, honest explanation of the trade-offs.

The prompt — copy and run it

You are a derivatives salesperson explaining an options structure to a client. The structure is [describe: e.g. call spread, risk reversal, collar, put spread] on [underlying], with [strikes/expiry if known]. Produce a plain-English walk-through:
1. What the structure IS and the view it expresses, in 2-3 sentences.
2. A payoff TABLE at key underlying levels (below lower strike, between, above) — using only strikes/premia I provide; where a premium is unknown, mark it "quote".
3. Max gain, max loss, and breakeven(s), each with the reasoning.
4. When this structure is the RIGHT tool vs a simpler alternative, and the main risks (path, vol, liquidity, assignment).
Do not quote a live premium or imply a price you were not given.

Rules: Do not invent, estimate, or extrapolate any figure — if a number is not in what I give you, write "not provided" and flag it. Mark every claim I should verify externally before relying on it. Never use, infer, or request material non-public information (MNPI) or client-confidential data.

Why this prompt works

Clients trust salespeople who explain trade-offs, not just upside; a payoff table plus honest max-loss/breakeven and a 'when NOT to use it' section is exactly the balanced framing that builds credibility.

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