Anyone up for the challenge of simplifying what a seagull option trade is/does/why/etc
When you teach someone something you get to learn it twice ;D
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classic seagull for the exam is with a bull call spread. it’s a bull call spread (buy the call with the lower strike, sell the call with the higher strike)… PLUS you also sell an OTM put.
Classic other one is with a bear put spread where you sell an OTM call.
The reason you do them both is for the same reason you do the bull call spread or the bear put spread. The thing to remember with a seagull is: you simply have one additional option, where you’re selling an OTM option that’s the dead-opposite to the ones you’re using in the main part of the seagull.
You do that third leg to reduce your costs more (or earn more money). For the bull call spread seagull with selling an OTM put, you’re doing the setup because you want to do a bull call spread but you want to reduce your costs more by earning premiums on an OTM put that you never think will come into the money - because you’re bullish.
On the bear put spread seagull, you’re selling an OTM call to earn extra money. You never think the OTM call will ever come into the money; it’s a money earner for you. Your prediction for the stock is bearish (therefore the bear put spread), the OTM call is just to earn more premium.
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Also on the exam - remember a condor is like a butterfly except you take the middle 2 options as the body instead of doubling one middle option like you do in a butterfly. Just throwing that in there as well in case we see condor. Good luck on your exam, you got this!
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Thank you for this explanation on the seagull spread very helpful
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@Greybeard_The_Elder Awesome explanation, thank you very much for simplifying.
Your condor additional was also very much appreciated.
Now time to practice this.
Best of luck this week! 
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