A bull call spread buys a call and sells a higher-strike call to lower cost. Both risk and reward are capped — a cheaper, defined-risk way to play a moderate move up.
Open the Bull Call Spread calculator →Use it when you expect a moderate rise and want a cheaper, defined-risk alternative to buying a single call. Selling the higher-strike call reduces your cost and your breakeven, at the price of capping the upside.
It works best when implied volatility is low (options are cheap to buy) and you have a clear target price in mind — set the short strike near where you expect the stock to land.
Maximum loss is the net debit, reached if the stock stays below the lower strike. Maximum profit is the strike width minus the debit, reached if it closes above the higher strike.
Because both legs are defined, there are no surprises — but the capped upside means a huge rally earns no more than the spread width. Many traders close early once most of the profit is captured.
Use the free OptionProfit Bull Call Spread calculator to load a live option chain, build the trade, and instantly see the payoff chart, breakevens, probability of profit, Greeks and a Monte Carlo simulation of outcomes.
Selling it lowers your cost and breakeven, raising your probability of profit — the trade-off is that your upside is capped at the short strike.
The net debit you paid, and nothing more, because the long call defines your risk.
The debit spread suits low IV and a directional view; the credit spread suits high IV and a "won’t fall" view. Their payoffs are similar.
Educational use only. Quotes are delayed ~15 minutes and nothing here is financial advice. Options trading involves substantial risk of loss. Privacy · Terms.