> For the complete documentation index, see [llms.txt](https://guide.laevitas.ch/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://guide.laevitas.ch/option-strategies/bull-call-spread.md).

# Bull Call Spread

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Also called Long Call Vertical, a Bull Call Spread is the simultaneous purchase of a lower strike price Call and sale of a higher strike price Call, with the same expiration. These are usually done with a debit.
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**Payoff Diagram:**

<div align="center"><img src="/files/14Kg3JuJ755nUHtOwEXi" alt=""></div>

**Direction Assumption:** Bullish

**Maximum Profit:** Limited to the difference between the two strike prices, minus the premium paid. Maximum profit is realized when the underlying moves to or above the Short Call strike price on expiration.

**Maximum Loss:** Limited to premium paid. \
Maximum loss is realized if the spread expires worthless, when the underlying moves to or below the Long Call strike price on expiration. &#x20;

**Breakeven Price:** Equal to the Long Call Strike Price + Premium paid

**Theta:** Passage of Time -> Negative Effect\
The net effect of time decay is negative. It will erode the value of the Long Call in a bigger extent than the Short Call.

**Volatility:** Negligible effect