A strategy in options trading in which an investor purchases call options at a lower in-the-money strike price while simultaneously selling shares of the identical asset at a higher out-of-the-money strike price. Since the long call option costs more than the short call option, the investor starts at a small debit. This is a vertical spread trade because both options must share the same expiration date. The maximum profit in this trade is the spread between the lower and higher strike price, minus the initial debit from purchasing the long call option, whereas the maximum loss is simply the initial debit.
Related information about bull call spread:
- Bull Call Spread
A bull call spread is a type of vertical spread. It contains two calls with the same expiration but different strikes. The strike price of the short call is higher than the ...
- Bull Call Spread Definition | Investopedia
An options strategy that involves purchasing call options at a specific strike price while also selling the same number of calls of the same asset and expiration ...
- Bull spread - Wikipedia, the free encyclopedia
A bull call spread is constructed by buying a call option with a low exercise price ( K), and selling another call option with a higher exercise price. Payoffs from a ...
- Bull Call Spread Explained | Online Option Trading Guide
What is Bull Call Spread? See detailed explanations and examples on how and when to use the Bull Call Spread options trading strategy.
- Bull Call Spread by OptionTradingpedia.com
Learn everything about the Bull Call Spread as well as its advantages and disadvantages now.
- Bull Call Spread - Options Tutorials
A Bull Call Spread, also known as a call debit spread, is a bullish strategy ... A trader would use a Bull Call Spread in the following hypothetical situation: A trader ...
- Bull Call Spreads - A Cheaper Way to Be Long Options - YouTube
Dec 13, 2011 ... Learn how to utilize a Bull Call Spread in your trading with help of Drew Wilkins, a futures and options broker at Daniels Trading.
- Long Call Spread | Bull Call Spread - The Options Playbook
A long call spread, or bull call spread, is an alternative to buying a long call where you also sell a call at a strike price below the purchased call strike price.