Bull call spread, also known as vertical bull spread, consists of a long position in lower strike call, frequently at the money, and a short position in a higher strike call of the same expiry. The holder of a bull call spread usually expects the base price to go up, but not reach the strike of the short call, realizing the maximum profit. A tight bull call spread is similar to a binary call option. See also bear call spread and bull calendar spread.
Want to learn more? Download now an interactive reference application for iPhone. The screenshot shows the following portfolio:
Volume | Instrument |
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1 | European call struck at 10.000 with expiry in 30 days |
-1 | European call struck at 11.000 with expiry in 30 days |
This is an excerpt from iOptioneer option trading reference application. In order to build the real-time dynamic strategy graph and run simulations you will need to download the application from App Store.
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