What is Bull Call Spread Strategy Basics, Advantages and Disadvantages

Content What Is a Bull Call Spread? Can I Hold My Bull Call Spread Till Expiration? Bull Call Debit Spread market outlook The Ultimate Guide To Implied Volatility The profit/loss payoff profiles are exactly the same, once adjusted for the net cost to carry. The bull call spread requires a known initial outlay for an unknown eventual return; the bull put spread produces a known initial cash inflow in exchange for a possible outlay later on. Up to a certain stock price, the bull call spread works a lot like its long call component would as a standalone strategy. The maximum gain is capped at expiration, should the stock price do even better than hoped and exceed the higher strike price. If the stock price is at or above the higher strike at expiration, in...