re: payoff diagrams Hi Rem,
I have Metastock but don't use the optionscope for generating payoff diagrams, or testing option concepts. For this sort of stuff I use some of Pete Hoadleys Excel spreadsheets.
http://www.hoadley.net/options/options.htm
Using the excel bits and pieces, I can analyse all the greeks and look into volatility variations for and strategy, or a current position.
I do note however that for a underlying price at expiry of the first option prices in between the two strike prices in the Buffalo Spread a "small" lost of capital occurs. However this is a small fraction of the potential benefit if the price appreciates above the strike price for the bought call.
As you have stated previously this is a "bullish" senario position, I just like the built in stop loss mechanism.
This all really adds to my library of what option strategies to use for a given anticipated movement in the underlying shareprice. I'm actually now down to a very small selection of prefered strategies, as a against a huge list of possibles a few years ago.
I think Andrew would have liked this particular strategy, as it fits in quite well with how I think his mind was thinking before he stopped posting on HC
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