Bull call spread
Buy a call and sell a higher one: a cheaper bullish bet with capped profit.
Bullish2 legsDebit
Illustrative: underlying at 100, strikes every 2.5, 45 days to expiry, implied volatility 25%, model prices. One lot = 100 shares.
Key figures
| Opens for | a debit of $198 |
|---|---|
| Max profit | +$302 |
| Max loss | −$198 |
| Break-even | 101.98 |
| Position delta today | +22 shares |
| Outlook | Bullish |
The legs
| Action | Quantity | Option | Model price |
|---|---|---|---|
| Buy | 1 | 100 call, 45 days | 3.77 |
| Sell | 1 | 105 call, 45 days | 1.79 |
How it works
Buy a call and sell a higher one: a cheaper bullish bet with capped profit. A vertical spread buys one option and sells another of the same type and expiry at a different strike. The sold option pays for part of the bought one and caps the result on both sides.
When it fits
It suits a view that the underlying holds up or rises before expiry.
What can go wrong
The most it can lose at expiry in this example is −$198. Short options can be assigned early, and a sharp fall with implied volatility rising can hurt more than the expiry line suggests, which is what the crash band shows.
Building it in Trident
In the Strategy Lab, choose bull call spread and the days to expiry. Trident applies these strike rules to your live chain, prices each leg and draws the trade on the risk graph, where you can drag the days to expiry, change implied volatility or switch on the crash band. When it looks right, send it to order management; nothing reaches your broker until you send it.
Frequently asked questions
What is a bull call spread?
Buy a call and sell a higher one: a cheaper bullish bet with capped profit.
What is the maximum loss on a bull call spread?
In this illustrative example it is −$198 for one lot at expiry.
Where does a bull call spread break even?
With the underlying at 100 in this illustrative example, the break-even at expiry is 101.98.
Can I build a bull call spread in Trident?
Yes. Pick it in the Strategy Lab and Trident chooses the strikes from your live chain, prices the legs and draws it on the risk graph.
Illustrative example with model prices, not a recommendation. Options carry risk of loss. See the risk disclosure.