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Bull Call Spread

A Bull Call Spread is an options strategy used when you expect a moderate rise in a stocku2019s price. It involves buying a call option at a lower strike price and selling another call at a higher strike price, both with the same expiry. This limits both potential profit and loss, making it a cost-effective bullish strategy.

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Bull Call Spread

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  1. Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ Bull Call Spread

  2. Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ What is a Bull Call Spread? • Bullish Strategy for Moderate Gains • Buy 1 Call (Lower Strike Price) • Sell 1 Call (Higher Strike Price) • Same Expiry | Limited Risk & Reward Use When: • You expect the stock price to rise moderately, not aggressively.

  3. Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ How Does It Work? Mechanism: • Long Call (Lower Strike): Gives the right to buy at a lower price • Short Call (Higher Strike): Obligates you to sell at a higher price • Net Premium Paid = Premium of Long Call – Premium from Short Call • Max Profit = Difference in Strike Prices – Net Premium • Max Loss = Net Premium Paid

  4. Real Example Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ Let’s say: • Buy 1 Call at ₹100 (strike ₹100, premium ₹10) • Sell 1 Call at ₹110 (strike ₹110, premium ₹5) • Net Premium Paid: ₹5 • Max Profit: ₹5 (₹110 – ₹100 – ₹5) • Max Loss: ₹5 (if price stays below ₹100) • Breakeven: ₹105 (Lower Strike + Net Premium)

  5. Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/ Execute with Navia App Use Navia Mobile & Web App • Easy option chain access • Quick spread creation with auto-pairing • Live P&L tracking • Plan, execute, and manage your Bull Call Spread with precision and ease.

  6. Disclaimer Investment in securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are for illustrative purposes and are not intended as recommendations. Brokerage will not exceed the SEBI prescribed limit. Navia Markets Ltd ,SEBI Registration No.INZ000095034-NSE Member code for CM, FAO & CD: 07708 - BSE Clearing No. for CM, FAO & CD: 6341-MCX Member ID: 45345 NSDL DP ID: IN300378-CDSL DP ID: 12086500-SEBI Registration No. for DP: IN-DP-311-2017-GST Registration number :33AAACM4739R2ZZ-Registered office: Ganga Griha, 4th & 5th Floor, No.9, Nungambakkam High Road, Chennai - 600 034 Email ID: ig@navia.co.in - Contact No: +91 70100 75500 https://bit.ly/naviadisclaimer Read blog - https://navia.co.in/blog/anatomy-of-a-bull-call-and-bear-put-spread/

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