A bull call spread is an options strategy that consists of buying a call option with a lower strike price and at the same time selling a call option with a higher strike price. Both the call options should be of the same underlying asset and expiry date. A bull call spread is a limited profit and limited risk strategy. The maximum loss is the net premium paid, the maximum profit is the difference between the strikes minus the net premium, and the breakeven is the lower strike plus the net premium. Traders use it when they expect a moderate rise in the stock.
In this video we will be covering:
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What Bull Call Spread is
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How it works
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How it is calculated using Marketxls
For a worked Excel example, read the Bull Call Spread calculator guide.
Use the Bull Call Spread Option Strategy template to model the payoff in Excel.
