Bull call spread

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Bull spread
In options trading, a bull spread is a bullishvertical spread options strategy that is designed to profit from a moderate rise in the price of the underlying security.Because of put-call parity, a bull spread can be constructed using either put options or call options. If constructed using calls, it is a bull call spread. If constructed using puts, it is a bull put spread.
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A Guide to Futures | Options Market Terminology : English English DictionaryDownload this dictionary
Bull call spread
The purchase of a call with a low strike price against the sale of a call with a higher strike price; prices are expected to rise. The maximum potential profit is calculated as follows: (high strike price - low strike price) - net premium cost, where net premium cost = premiums paid - premiums received. The maximum possible loss is the net premium cost.


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