Bull Call Spread
Outlook: Bullish
Vertical spreads
Long lower-strike call, short higher-strike call. Bullish, defined risk, defined reward, debit.
Max profit
(Strike width) - debit paid.
Max loss
Debit paid.
Breakeven
Long strike + debit.
Legs
Long
1×
call
ATM
Short
1×
call
ATM +5
Structure
Long 1 call at lower strike + short 1 call at higher strike, same expiration.
When to use
Modest bullish view, especially when IV is elevated and a naked long call would be too expensive.
Example
AAPL at $185. Long 185 call $5.50, short 190 call $3.00. Debit $2.50. Max profit $2.50, max loss $2.50, breakeven $187.50.
Notes
- Caps profit at the short strike. Lower cost, lower breakeven than a naked long call.
Build it in the simulator
Open this structure in the app, adjust spot, IV, and DTE, and watch the payoff and Greeks move.
Get the appRelated strategies
Bear Put Spread
Long higher-strike put, short lower-strike put. Bearish, defined risk, debit.
Bull Put Spread
Short higher-strike put, long lower-strike put. Neutral-to-bullish, credit, theta-positive.
Bear Call Spread
Short lower-strike call, long higher-strike call. Neutral-to-bearish, credit, theta-positive.