Bull Call Spread
A defined-risk bet on a moderate rise: buy a lower call, sell a higher one.
Definition
A bull call spread is a two-leg bullish strategy. You buy a call at a lower strike and simultaneously sell a call at a higher strike in the same expiry. The premium received from the short call reduces the cost of the long call, so the position is a net debit. Both your maximum profit and maximum loss are fixed from the outset.
Formula
Max profit = (Higher strike − Lower strike) − Net premium paid
Max loss = Net premium paid
Break-even = Lower strike + Net premium paid
Why it matters
It is a cheaper, lower-risk way to play a moderate up-move than buying a single call. You sacrifice the unlimited upside of a naked call, but in return your cost falls and time decay hurts less. It suits a view that the underlying will rise to around the higher strike but not run away far beyond it.
Example
With NIFTY at 22,000 you buy the 22,000 call for 150 and sell the 22,300 call for 60. Net cost is 90. Maximum profit is (22,300 − 22,000) − 90 = 210 if NIFTY closes at or above 22,300; maximum loss is the 90 paid; break-even is 22,090.
See it live
Use the TradePulse option chain to read live call premiums across strikes and build your spread.