Bull Call Spread
A bull call debit spread is a multi-leg, risk-defined, bullish strategy with limited profit potential. A bull call spread is entered when the buyer believes the underlying asset price will rise before the expiration date.
Kirk Du Plessis
Apr 19, 2021
Bull call debit spreads are strategies that are designed to profit from a directional move higher in the underlying stock. Because you are a net buyer of options, you could also profit from increased implied volatility (though it's not as likely). These are generally low probability trades because that end up being 50-50 bets on the underlying direction. As a result, we do not trade these types of strategies often in our portfolio but will occasionally use them for rebalancing purposes.
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