spreadsLow RiskBullish
Bull Call Spread
Buy a call, sell a higher-strike call. Cheaper than a long call with capped profit.
What is a Bull Call Spread?
You buy a call at a lower strike and sell a call at a higher strike, same expiration. The sold call reduces your premium cost — but also caps your maximum profit at the higher strike. This is a defined-risk, defined-reward bullish strategy.
When to use it
Use when you're moderately bullish and want to reduce the cost of a long call. Best when IV is moderate-to-high (the short call captures more premium). Choose strikes around your price target.
Structure
Buy 1 lower-strike call + sell 1 higher-strike call, same expiration.
Key Metrics
Max Profit
Difference between strikes − net premium paid × 100.
Max Loss
Net premium paid (if stock closes below lower strike).
Breakeven
Lower strike + net premium paid.
Greeks Profile
Net delta: positive but moderate. Theta: slightly negative early, improves near expiration. Vega: small positive near the money.
Tips & Best Practices
- 1Choose the short strike at your price target — don't sell too close in.
- 2A 1:2 or 1:3 risk-reward ratio is a good benchmark.
- 3This is one of the most beginner-friendly spreads.
- 4Close for a profit at 50–75% of max gain rather than holding to expiration.
See it in action
Model a Bull Call Spread with a real ticker. See the P&L chart, heatmap, and exact breakevens.
Open Bull Call Spread Calculator →