Moderately bullish
Bull Call Spread
Cheaper bullish bet with a profit cap.
Buy a call and sell a higher-strike call to offset the cost. This lowers your outlay (and breakeven) versus a plain long call, in exchange for capping the maximum profit at the spread width.
Construction
Buy 1 call + sell 1 higher-strike call.
Max profit
Spread width − net debit
Max loss
Net debit paid
Breakeven
Lower strike + net debit
Play with the payoff
Moderately bullish
At expiryToday (30d, 30% IV)
Max profit
$7.50
Max loss
−$2.50
Breakeven
$102.50
Best when
- You're moderately bullish to a target price
- You want a cheaper, defined-risk position
- You're fine capping the upside