Build a Bull Call Spread Strategy

What is a bull call spread?

BullishLimited ProfitLimited Loss

A bullish vertical spread strategy which has limited risk and reward. It combines a long and short call which caps the upside, but also the downside.

The goal is for the stock to be above strike B at expiration. This strategy is almost neutral to changes in volatility. Time-decay is helpful while it is profitable, but harmful when it is losing.

(also known as: Call Debit Spread)
ABProfitLossStock Price
  • Buy a call at strike A
  • Sell a call at strike B