Ideas
.svg)
Intel Junction
Trade
Watchlist
Orders
Positions
Broker Access
Hot Keys
Alert Trigger Order (ATO)
Bracket Order
Target Stoploss Order
Add Broker
Track
Built-Up Breadth
Built-Up Scrip Symbol
Synopsis Futures OI
Built-Up Sectors
Top Stocks
Intraday Movers
Analyze
Charts/ Order & Trade
Multi Strike OI
O&T Watch List
Strategy Chart
Scan
Built-Up Scrip OI-Historical
Built-Up Sector Cycle
Built-Up Sector OI-Historical
Built-Up Scrip Cycle
Comparative Analysis
Tools
Optimizer Find Strategy
Optimizer Find Specific
Optimizer My Forecasts
Optimizer Constrains
Learn
Events
Webinars
Book a Session
Bull Call Spread
bullishBull Call Spread is a bullish strategy that is executed by buying a call and selling higher strike call to fund it. It is a net debit strategy with limited risk to limited reward
Example:
| Instrument | Qty | Price |
|---|---|---|
| BUY NIFTY 30-Jun-26 24100 CE | 65 | 101.25 |
| SELL NIFTY 30-Jun-26 25600 CE | 65 | 0.75 |
When To Execute?
Bull Call spread is executed when we have bullish outlook in Stock/ Index. Instead of buying naked call with higher outflow, one sells higher strike Call to partially fund the outflow resulting in hedged strategy
Trade
Buy 1 lot ATM call and Sell 1 lot OTM call
Advantages
Helps to participate in a bullish stock with relatively low cost
Reduced risk, cost, and breakeven point for a medium- to long-term bullish trade as compared to buying a call alone
Capped downside (although still 100% of the outlay)
Disadvantages
Capped profit if the stock closes above short Call
Identifying clear area of resistance and selection of strike becomes very important
Maximum Profit
Maximum reward is limited to difference in strike less net outflow. Maximum Profit arises if the stock closes at or above the higher strike. Identifying clear uptrend is essential for the strategy
Maximum Loss
Maximum risk is limited to difference in cost of long and short call. Breakeven for the strategy would be lower strike + net outflow