Mind expanding the acronyms and explaining what exactly you've done? I'm still an investing novice.
- ATM: At The Money
- ITM: In The Money
- QQQ: Invesco QQQ Trust
Suppose $TWTR is $49 a share, you buy a call for $50 and sell a call for $60. Suppose the $50 call is $3 that means you paid $3. Then you sell the $60 for suppose $1. So now you are out $2. That's your max loss.
Now tomorrow $TWTR goes to $35. Everything expires and you lose $2. Suppose it goes to $300. Then your profits are ($60-50)-$2=$8 Profits Suppose it went to $55. Suppose this is after expiry, then your contract is worth $5 but you paid $3 so you made $2 profit, but you also sold 1 contract, so now you have $3 profits.
So in essence, the spread limits your upside, further limits your downside while you are bullish.