Bull call spread strategy

The bull call spread is a defined-risk, bullish options strategy that involves buying a call at one strike and selling a call at a higher strike, both with the same expiration. You pay a net debit upfront and profit if the stock rises above your long call's strike , but your maximum gain is capped at the spread width.

Bias: Bullish Risk profile: Defined (debit paid) Ideal conditions: Moderate bullish view, low to moderate IV rank

How it's constructed

• Buy a call at a lower strike (ATM or slightly OTM)
• Sell a call at a higher strike (further OTM)
• Same expiration, net debit paid

The short call reduces the cost of the long call but caps your maximum profit at the spread width.

Setup example

AAPL is at $185. You're moderately bullish, expecting a move to $200 over 30 days.

• Buy the $185 call → pay $5.50
• Sell the $195 call → collect $2.00
• Net debit: $3.50 per share ($350 per spread)

Max profit, max loss, breakeven

When to use a bull call spread

Use when you're moderately bullish and want defined risk at lower cost than buying an outright call. The short call reduces premium paid , if your target is the short strike (not a runaway move), the spread captures the same profit at significantly less cost.

Ideal when: IV rank is moderate or low (options are reasonably priced), you have a specific price target in mind, and you want to reduce the impact of theta decay relative to a long call.

Avoid when: IV rank is high (options are expensive , selling a credit spread is more attractive), or you expect a very large move beyond the short strike (the cap limits your profit).

Related terms: Debit spread, call option, defined risk, long call, delta, IV rank

Try it on Stryke: Screen for low IV rank bullish candidates in the Options Screener.

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