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Bull Call Spread

Buying a Call at a lower strike and selling a Call at a higher strike (same expiry) — reduces net cost and defines maximum risk for a bullish view.

A Bull Call Spread involves buying a Call at a lower strike (the primary bullish position) while simultaneously selling a Call at a higher strike, same expiry, to partially offset the cost. Maximum loss is capped at the net premium paid; maximum profit is capped at the difference between strikes minus the net premium paid.

See the full formulas and a worked example in Bull Call Spread and Bear Put Spread Explained.