Bull Call spread

Option strategies to know

Covered Call: Investors will use this strategy when they have a short-term position and neutral opinion on assets or looking to generate additional profit or protect against a decline in underlying assets. Married Put: This option strategy is used like an insurance policy to save against uncertain price decline of assets. Bull Call Spread: This type of strategy is used when an investor is bullish but expects a moderate rise in price. Read More about Option strategies.
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Option Strategy: Bull Call Spread

When Option trader thinks that the underlying stock price moved up moderately in near term. It is implemented by buying an at the money call option while simultaneously writing a higher striking out of the money call option of same underlying security and the same expiration month. Maximum profit achieved when the price of underlying is greater than or equal to the strike price of the short call. Maximum loss occurs when the price of underlying is less than or equal to the strike price of the long call.
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