What is a bull call spread, in plain words?
A bull call spread is buying a call at one strike and selling a call at a higher strike, on the same stock with the same expiry 1. The call sold pays for part of the call bought. The most it can lose is what the spread cost; the most it can make is the gap between the strikes minus that cost; it breaks even at the lower strike plus the cost 1.
A $50 call bought and a $55 call sold, both with 30 days left at 30% implied volatility (made-up numbers). Move where the stock ends at expiry.
In numbers
By the formula the $50 call costs $1.80 and the $55 call sells for $0.33 2, so the spread costs $1.47 a share, $147 a contract. It can make at most $5 − $1.47 = $3.53 a share, can lose at most $1.47, and breaks even at $51.47 1, against $51.80 for the $50 call alone.
The trade-off
Cheaper than the call alone and a nearer break-even, in exchange for giving up any rise above $55. Time works against the spread while the stock sits near the lower strike and for it near the higher one 1.
What this shows, and what it doesn't
The result at expiry, a share, before fees and the bid-ask spread on two options. The call sold can be exercised against you before expiry 3.
Go further
Sources (3), checked 20 October 2026 and 27 October 2026
- Fidelity, “Bull call spread” (Options Strategy Guide). Read it (read 27 October 2026)
- Fischer Black and Myron Scholes, “The Pricing of Options and Corporate Liabilities”, Journal of Political Economy 81(3), 637–654, 1973. Read it (read 20 October 2026)
- FINRA, “Trading Options: Understanding Assignment” (14 December 2020). Read it (read 27 October 2026)
Now try it on a scenario of your own
Pick where a simulated stock might be, and by when: drag one dot and see, side by side, what buying shares, one option, or a pair of options (a call or put spread) would each do. Free, no sign-up.
Check a trade before you make it →