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Bull Call Spreads for Beginners: Options Learning Center
Description
The bull call spread is a long call option strategy where you expect the underlying security to increase in value. The bull call option strategy involves buying a call option around the price of the underlying security and selling a call option at a higher strike price.
Maximum loss is the difference between the premium paid for the long call and the premium received for the short call (Net Debit), which will occur if the underlying security price is below the lower strike price at expiration. Maximum profit is the difference in strike values minus the Net Debit. The bull call strategy succeeds if the security price is above breakeven (lower strike + Net Debit). Maximum profit is achieved if the security price is above the higher strike price at expiration.
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