Bull Call Spread options strategy
A bull call spread buys a call and sells a higher-strike call with the same expiry. The short call lowers cost and caps profit.
- Market outlook
- Moderately bullish
- Construction
- Buy a lower-strike call and sell a higher-strike call.
- Maximum risk
- Net debit paid.
- Maximum reward
- Strike width minus net debit.
- Breakeven at expiry
- Lower strike plus net debit.
Strategy questions
- What is a Bull Call Spread?
- A bull call spread buys a call and sells a higher-strike call with the same expiry. The short call lowers cost and caps profit.
- What is the maximum risk of a Bull Call Spread?
- Net debit paid.
Risk note
Options are leveraged and expire. Model payoff at multiple prices and volatility levels in the Options Strategy Lab before considering a position.