Bull Call Spread
In plain English
A cheaper way to bet on a rise. You buy a call, then sell a higher call to fund part of it. You give up the gains above that higher strike in exchange for paying less and knowing your exact max loss up front.
How it's built
Buy a call and sell a higher-strike call to cheapen the trade and define risk.
Illustrative payoff at expiry on a NIFTY-like underlying (spot 24,000, 7d, 13% IV). The shape is the point — open it in the Strategy Lab to tune spot, time and volatility live.
Max profit₹5,317
Max loss₹4,433
Net premiumDr ₹4,433
Breakevens24,068
When to use it
Moderately bullish with a price target. The short call funds part of the long call.
Max profit
Capped at (spread width − net debit).
Max loss
Limited to the net debit paid.
Common mistakes
- Strikes too wide (it just acts like a naked call).
- Holding into expiry expecting full value too early.