Bull call spread

Buy a call, sell a higher one. Cheaper than the call alone, with the upside capped at the short strike.

The view: Up, but only so far.

Construction

LegQtyStrike at 100 spot
Long call1100
Short call1110
Loading chart…
Max profit
+733
Max loss
-267
Breakeven
102.67
Net cash
-267
Priced at 100 spot, 25% vol, 30 days left. Move the sliders.Open in the calculator

When it fits

You have a target rather than a hope. Selling the upper strike funds part of the position and cuts the amount time decay can take from you.

What goes wrong

  • The cap is real: everything above the short strike belongs to someone else.
  • Both legs have to be closed, so spreads cost more to trade than they look.
  • Maximum profit only arrives at expiry, not on the way there.

Try it properly

The chart above is the real pricing model, limited to three sliders. To change strikes, add legs, switch to futures, or price it against your own volatility assumption, open it in the options P&L calculator — the link under the chart carries this exact position across.

Education, not advice. Payoffs ignore commission, bid-ask spread, assignment risk and financing.

  • directional
  • spread
  • defined risk

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