Bull Call Spread: Option Strategy Payoff Calculator

This page demonstrates how to set up and work with a bull call spread (long call spread, debit call spread) position in the Option Strategy Payoff Calculator.

Position Setup

The easiest way to create a bull call spread position is to select “Bull Call Spread” in the strategy selection dropdown box in cell E6.

Bull call spread strategy selection

Where to Find Bull Call Spread

You can find it via any of the following paths in the dropdown boxes in E3 (filter type), E4 (strategy group), and E6 (strategy):

  • All Strategies (E3) / All Groups (E4) / Bull Call Spread (E6)
  • Named Groups / Vertical Spreads / Bull Call Spread
  • Number of Legs / Two Legs / Bull Call Spread
  • Underlying Direction / Bullish / Bull Call Spread
  • Risk Profile / Limited Risk & Limited Profit / Bull Call Spread

You can also set all the position inputs manually in cells C9-F12 (position, instrument type, strike, initial price for each leg).

Example

A bull call spread position consists of two call options, one long call with lower strike and one short call with higher strike. Let’s model an example bull call spread with the following two options:

Long 3 contracts of 45 strike call option, bought for 4.38 per share.

Short 3 contracts of 50 strike call option sold for 2.02 per share.

Bull call spread calculator example

The long call with be our leg 1 (row 9) and the short call leg 2 (row 10). Legs 3 and 4 are unused; their instrument types should be set to None (D11, D12).

The position sizes of the long (C9) and short (C10) call option should be the same, only with opposite signs (+3 contracts for leg 1 and -3 contract for leg 2).

The strikes are entered in cells E9 (lower strike for the long call option) and E10 (higher strike for the short call).

Initial option prices are entered in cells F9, F10. Cell F9 is the price for which the lower strike call option is bought when opening the position. Cell F10 is the price from which the higher strike short call option is sold when opening the position. Both prices should be per share (or per unit of underlying). Both should be positive numbers. In out example, F9 is 4.38 and F10 is 2.02.

Value and P/L at Given Underlying Price

Risk Profile and Break-Even Points

Payoff Diagrams

Position Variations (Choosing Different Strikes)

Comparing to Other Strategies

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