Bull Call Spread Calculator

What Is a Bull Call Spread?

A bull call spread, or call debit spread, is a vertical spread where you buy a call at a lower strike and sell a call at a higher strike, both with the same expiration date. This is a moderately bullish strategy with limited risk and capped profit. You pay less than a long call, but your profit is limited if the stock rises.

Key Characteristics

• Max Loss: Limited to the net debit you pay to enter the trade. Occurs when the stock closes at or below the long strike at expiration.
• Max Profit: (Spread width − net debit) × 100 × number of contracts. Achieved when the stock price closes at or above the short strike at expiration.
• Breakeven: Long strike + net debit
• Outlook: Moderately bullish

How to Read the P/L Chart

The cyan line (T+0) shows your theoretical P/L at trade entry. Before expiration, the curve is smoother because both options still have time value. If the stock moves toward either strike, you will not yet see the full maximum loss or profit. The faster the stock moves toward either strike, the longer you'll have to wait to see the full max profit or loss.

T+0 means "today plus 0 days," while T+30 would mean "today plus 30 days." It's a common convention for payoff diagrams that show multiple points in time.

The white line (Expiration) shows your profit or loss at expiration. If the stock is below the long strike, you lose the full amount paid. Between the strikes, your profit increases as the stock rises. If the stock is above the short strike, your profit is capped because the short call offsets the long call 1-for-1 with further stock increases. This payoff graph highlights the spread's defined risk and defined reward.

The relationship between the T+0 and Expiration P/L lines helps you visualize time decay. Wherever the T+0 line is below the expiration line, the position has positive theta and profits from time passing. If the T+0 line is above the expiration line, the position has negative theta and loses money from time passing.

Try hovering over the chart at various stock prices and compare the T+0 and Expiration P/L lines.

Using This Calculator

1. Stock Price: The price of the stock at trade entry
2. Long Strike: The lower strike, where you buy the call
3. Short Strike: The higher strike, where you sell the call
4. Net Debit: The price you pay to enter the spread. To find your total cost and risk, multiply the net debit by 100 and by the number of spreads. For example, a $2.50 net debit with 2 spreads is $2.50 × 100 × 2 = $500 total cost.
5. Days to Expiration: How much time is left until both options expire
6. Implied Volatility: The market's expectation of future stock price movements, as implied by the stock's option prices

What Is a Bull Call Spread? — Full strategy guide with examples

Bull Call Spread vs Long Call

A long call has unlimited profit potential but costs more than a bull call spread with the same long strike. A bull call spread costs less, has a lower breakeven, and gives you a higher chance of profit, but your gains are capped. If you expect a big move, a long call may be better, or use wider call spread strikes. If you expect a moderate move higher, the spread offers better risk/reward.

Unless you are expecting a massive move higher, the call spread is typically the better trade due to the lower breakeven price. The lower breakeven makes it a higher probability trade, but also means you'll earn higher returns than an outright call purchase, so long as the stock doesn't head to the moon.

If you buy a 100 call for $5, you make 2x your money if the stock is $110 at expiration. If you buy a 100/110 call spread for $4, you make 2.5x your money if the stock goes to $110.

Bull Call Spread vs Bear Call Spread

Both are vertical call spreads, but with opposite directional outlooks. A bull call spread is a debit spread—you buy the lower strike call and sell the higher strike call, profiting when the stock rises. A bear call spread is a credit spread—you sell the lower strike call and buy the higher strike call, profiting when the stock stays flat or falls.

Think of them as mirror images: the bull call spread profits from upward movement, while the bear call spread profits from downward or sideways movement.

A Note on Early Assignment

The short call in your spread can be assigned early, usually when it is deep ITM near expiration or just before an ex-dividend date. If this happens, you will be short 100 shares, but your long call protects you. You can exercise your long call to cover the position or close both legs together (buy back the short shares and sell the long call). Either way, the spread structure protects you.

If your short call is only slightly ITM before expiration with 7+ days to expiration, the option will have lots of extrinsic value remaining, and early assignment will be unlikely. But if the short call is deep ITM with only $0.10 of extrinsic value, early assignment becomes more likely. If you do get early assigned on a bull call spread, that means you're at max profit, so it's not a bad thing.

Assignment at Expiration

Getting assigned by holding ITM options through expiration is different. If only your long call expires ITM, you'll end up with long stock. Your risk profile changes from capped downside to the risk of owning stock.

If both calls expire ITM, they offset, and you end up with no stock position. So if only your long call is ITM going into expiration, it's a good idea to close it to avoid ending up with long stock on the following trading day.

Related Calculators

• Long Call Calculator — Unlimited profit potential
• Bull Put Spread Calculator — Credit spread alternative
• Bear Call Spread Calculator — Bearish counterpart
• All Vertical Spread Calculators — Bullish and bearish spreads