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Directional strategyIntermediate

Bull Call Spread

Combine a long call with a higher-strike short call to reduce cost with capped upside.

When to use

Expecting moderate price gains, medium volatility.

Step-by-step

  1. 1

    Buy an ATM or slightly ITM call

  2. 2

    Sell an OTM call at higher strike

  3. 3

    Same expiration (30–60 DTE)

Example

TSLA at 250 USD. Buy 250 call at 12, sell 270 call at 5. Net debit 7 USD (= 700 USD). Max gain 1300 USD above 270.