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)
- Buy a call at strike A
- Sell a call at strike B