Bull Call Spread Calculator

A bull call spread, also called a call vertical spread, buys one call and sells a higher strike call with the same expiry. You pay less than for a single call, and in return your profit is capped at the higher strike.

How a bull call spread works

  • Buy a call at the lower strike.
  • Sell a call at the higher strike, same expiry.
  • Net debit = long call price − short call price. That is your max loss.
  • Max profit = (strike width − net debit) × 100 × contracts, reached at or above the higher strike at expiry.
  • Breakeven at expiry = lower strike + net debit.

The short call pays for part of the long call, so the spread costs less and loses less to time decay and falling IV.

Example

Stock at $100, 45 days to expiry, IV 40%. Buy the $100 call, sell the $110 call. Net debit about $3.53, so one spread costs $353.

  • Breakeven at expiry: $103.53
  • Max profit: about $647, or 183% ROI, at $110 or higher at expiry
  • At your target of $110 in 30 days, the spread is worth about $7.20: 104% ROI before expiry

The target test says Realistic: $110 in 30 days is 0.83 standard deviations.

How I pick the strikes

I set the short strike at the strike nearest my target, and the long strike one or two strikes toward the current price. That way the spread reaches most of its max value right where I expect the stock to go, and I am not paying for upside beyond my thesis.

My rule of thumb: the spread should be able to make at least 200% if the target is hit. If it cannot, the target is too close or the spread is too expensive.

Compare with a single call option to see what you give up for the lower cost.

FAQ

What is a bull call spread? A bullish options strategy: buy a call and sell a higher strike call with the same expiry. It costs less than a single call and caps both profit and loss.

Is a call vertical spread the same as a bull call spread? Yes. "Vertical" means the two legs have different strikes and the same expiry. With calls bought at the lower strike, it is a bull call spread, also called a call debit spread.

What is the max loss on a bull call spread? The net debit you paid, times 100 times contracts.

When is a bull call spread better than a long call? When implied volatility is high or your target is specific. The short call cuts the cost, and you only give up gains beyond your target.

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Educational tool only. Not investment advice. Prices are Black Scholes estimates, not live quotes. See the Disclaimer.