Option Trading Strategies – Vertical Spread – Bull Call Spread Strategy- Part 6

Option Trading Strategies – Vertical Spread – Bull Call Spread Strategy- Part 6

This is the part 6 of Option Trading strategies video series. In this particular part, I have explained in detail about Bull Call Spread Option Strategy. Bull Call Spread is a type of Vertical Spread Option Strategy. Option trading for beginners remains my focus and this entire how to trade options video series is structured around the same.

I have begun with the very basics of Bull Call Spread and explained the entire concept with help of an example. While doing the same, I have covered how Bull call spread remains a Debit Vertical spread options strategy. I have also explained the various conditions under which Bull Call Spread Option Strategy should be executed.

Bull Call Spread Vertical Spread strategy is when a Option Trader Buys ATM Call Option and simultaneously Writes OTM Call Option of same underlying asset within the same Option expiry series. By doing so, Trader limits his both Profit and Loss potential and stands to benefit if underlying Price remains in a range or with mild bullish bias.

Unlike Long Call Option Strategy, Bull Call Spread Option Strategy enables trader to remain Bullish while limiting the amount of loss he can undertake on positions. Profit is also capped though. Towards the end, I have also explained one variant of Bull Call Spread strategy and that is how a Trader can create Aggressive Bull Call spread strategy to profit more by limiting his risk.

Leave a Reply