Bull Call Spread
Strategy payoff chart
P/L when all options expire · One spread · Contract multiplier 100
| Side / quantity | Type | Strike | Initial term | Example premium / share |
|---|---|---|---|---|
| Buy 1 | Call | $90 | 30 days | $10.6960 |
| Sell 1 | Call | $110 | 30 days | $0.6552 |
Educational assumptions: entry spot $100, annual IV 30%, risk-free rate 4%, dividend yield 0. Premiums use the European Black–Scholes model, not market quotes. Fees, slippage, margin interest and early exercise are excluded; calculations retain unrounded values.Only the $0–$200 range is shown. Chart edges are not risk limits; an uncovered short call can have unlimited upside losses.
Structure
Buy a lower-strike call and sell a higher-strike call with the same expiration.
Market outlook
Mild to moderate rise.
How it works
The long call benefits from rising prices. The short call reduces cost by collecting premium but caps the upside.
Features
Limited maximum loss; limited maximum profit; cheaper than a standalone long call; usually positive Delta.
Based on learning material supplied by the site owner, with educational examples. Theta, Vega and Gamma signs describe typical conditions, not permanent properties. Before expiration, P/L also depends on IV, liquidity, assignment, margin and position management.Reference: OIC options strategies ↗