Learn How To Do Bull Call Spread or Debit Call Spread

Bull Call Spread or Debit Call Spread Option Investing Stratergy

A bull call spread is a limited-risk, limited-reward options strategy used when you expect a moderate rise in a stock’s price. It involves buying a call option at a lower strike price and selling another call at a higher strike price, both with the same expiration date.

How It Works

You buy a call option (lower strike) to gain upside exposure.
You sell a call option (higher strike) to offset the cost.
The net result is a debit (you pay a small premium).
Maximum profit occurs if the stock finishes at or above the higher strike.
Your risk is capped at the premium paid; reward is capped by the strike difference minus that premium.

➡️ Next: Bear Call Spread
⬅️ Previous: Bull-Call-Spread

Disclaimer

The Value-Trades website is intended for informational purposes only. The content provided on this website, including but not limited to recommendations, analysis, and opinions, should not be considered financial advice. Before making any investment decisions, whether buying or selling, based on information obtained from this website, it is imperative that you conduct your own thorough due diligence. This includes consulting with a qualified financial advisor, reviewing financial statements, and understanding the risks involved in any investment. The owner of this website shall not be held responsible for any financial losses incurred as a result of using the information provided herein. Investing in financial markets involves risk, and past performance is not indicative of future results. You are solely responsible for your investment decisions.