Bull Call Spread Calculator
A Bull Call Spread is a defined-risk bullish strategy designed to profit from moderate upward moves in an underlying stock or index. By selling a call option at a higher strike, you offset some of the cost of buying the lower-strike call option, reducing your overall risk and breakeven point.
To set up a Bull Call Spread, you buy one call option at a lower strike price (usually slightly in-the-money) and simultaneously sell one call option at a higher strike price (usually out-of-the-money) with the same expiration date. The maximum risk is limited to the net debit paid, while the maximum profit is capped at the difference between strike prices minus the net premium.
Simulates P&L if the underlying closes at any price at expiry.
Frequently Asked Questions
What is the maximum risk of a Bull Call Spread?
The maximum risk of a Bull Call Spread is strictly limited to the net premium paid (net debit) to enter the trade, multiplied by the contract lot size.
How is the breakeven price calculated?
The breakeven price for a Bull Call Spread at expiration is calculated by taking the lower strike price (Long Call) and adding the net premium paid.
When does this strategy achieve maximum profit?
Maximum profit is achieved if the underlying stock or index price finishes at or above the higher strike price (Short Call) at expiration.