A Bull Call Spread is a smart options trading strategy for when you think a stock’s price will go up — but not too much.

How it works:

• You buy one call option at a lower strike price.

   

• At the same time, you sell one call option at a higher strike price.

   

• Both options have the same expiry date.

   

By selling the second call, you get some premium back — this lowers your overall cost. The trade-off? Your profit is limited.

Example:

• Stock price now: ₹500

   

• You buy a ₹500 strike call option

   

• You sell a ₹520 strike call option

   

If the stock rises above ₹520 before expiry, you get the maximum profit. If it stays below ₹500, you only lose the net premium you paid.

1.  Key Points of Bull Call Spread:

• Best for: When you expect moderate upward movement in price

   

• Risk: Limited to the net premium paid

   

• Reward: Limited to the difference between strike prices minus net premium

   

Benefit: Cheaper than buying a single call option