Bull Call Spread

Buy lower strike Call, sell higher strike Call

Positions in Chart: Buy 1 lot of 25800 CE, Sell 1 lot of 26000 CE. Spot price: 25800

Setup

Buy ATM Call + Sell higher strike OTM Call

When to Use

  • Moderate bullish outlook with limited risk

Market Outlook

Volatility ExpectationExpected to Remain Stable
Price DirectionExpected to Rise Moderately

Risk & Reward

Breakeven PointLower Strike + Net Premium Paid
Max Contract LossNet Premium Paid
Max Position LossSame as Max Contract Loss

Strategy Details

Complexity LevelIntermediate
DirectionSteady Bullish
VolatilityNeutral
Number of Legs2 Leg
Strategy TypeDebit
Hedging CapabilityMinor Hedging

Description

A bull call spread involves buying a call option at a lower strike price and selling another call option at a higher strike price. Both options have the same expiration date

Example

If NIFTY is at ₹25,800, you might buy a ₹25,800 Call for ₹120 and sell a ₹26,000 Call for ₹80, creating a net debit of ₹40. Maximum profit is ₹160 (₹200 strike difference - ₹40 net premium).

This information is for educational purposes only and should not be considered as financial advice. Always consult with a qualified financial advisor before making investment decisions. Data is constructed and is not actual. Calculations may have errors.

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Bull Call Spread - Options Strategy Guide | WaveNodes Professional