Bull Call Spread: a Option Trading Strategy

The official definition of the bull call spread is "the simultaneous purchase of one call option with a lower strike price and the writing of another call option with a higher strike price." The bull call spread option trading strategy is among the most used vertical spreads. Keep in mind that both options have the same expiration date.

The situation you are looking for in a bull call spread is for the underlying stock of the option to increase in price or move sideways. You should be looking for underlying stocks that are steadily rising. A stock that has high volatility, even though it has an attractive premium (remember you are selling one option), may act too unexpectedly and undermine your profitability.

Bull call spread, as a strategy, is popular partly because it costs less than simply buying a call option.