Bull Call Spread

Psychology:

The bull call spread strategy involves buying a single call option contract that has a low exercise price and selling a single call option contract that has a higher exercise price. The bull call spread is best when an investor is somewhat bullish toward the underlying asset’s share price and/or its volatility. The bull call spread can prove to be an economical method of taking a position when the investor is bullish toward the underlying asset’s share price.

Risk / Reward:

Maximum Loss: Limited to the total premium that was paid for purchased option contract minus the premium received for the option contract that is sold.

Maximum Gain: Limited to the amount that exists when you subtract the premium that was paid for the spread from the difference of the exercise prices.