Bull Call Spread Tutorial & Trade Examples ($30,000+ in Profits)

The Bull Call Spread is a powerful, limited-risk options strategy with a bullish stock price outlook. Gain an in-depth understanding of buying call spreads and see real trade examples with $30,000+ in profits in this video.

==== Chapters ====

0:00 Intro
0:40 Bull Call Spread Explained
2:25 Understanding Call Spread Prices
6:06 Bull Call Spread Payoff Graph vs. Stock Price & Time
8:44 Profitable and Unprofitable Call Spread Examples (P/L Visualizations)
11:57 Call Spread Strike Price Selection vs. Return Potential
15:30 LIVE Trading on tastytrade (Call Spread Entry & Exit)
18:56 Trade Summaries
20:59 The Importance of Taking Profits on Short-Term Trades
23:22 Why a Call Spread's Max Value is the Width of its Strikes
25:10 Exercise & Assignment
26:10 Why Bull Call Spreads Can Double Easier Than Naked Long Calls (Buying Calls vs. Call Spreads)
31:36 Free Options Trading Education and Strategy Breakdown PDFs (200+ Pages)

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===== Summary ====

What is a Bull Call Spread?

A Bull Call Spread is an options trading strategy involving two call options on the same asset with identical expiration dates but different strike prices. It combines buying a call option at a lower strike price (long call) and selling another call option at a higher strike price (short call). This method is tailored for scenarios where the trader anticipates a moderate rise in the underlying asset's price.

Benefits of Employing a Bull Call Spread

Limited Risk: The strategy caps potential losses at the net premium paid, providing a safety net against market volatility.

Defined Profit Potential: While it limits maximum profit, this strategy shines by offering predictable outcomes, with the highest gain realized if the asset's price exceeds the higher strike price at expiration.

Cost Efficiency: Offsetting the cost of the long call with the premium received from the short call makes this an economical choice for traders.

Strategic Flexibility: Traders can adjust strike prices and expiration dates, tailoring the strategy to fit their market outlook and risk appetite.

Watch the video all the way through to learn these key concepts quickly, and hopefully effectively with the explanations and accompanying visuals.

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Disclaimer: Nothing contained in our content constitutes a solicitation, recommendation, promotion, or endorsement of any particular security, other investment product, transaction, or investment. Trading Futures, Options on Futures, and retail off-exchange foreign currency transactions involve substantial risk of loss and are not suitable for all investors. You should carefully consider whether trading is suitable for you in light of your circumstances, knowledge, and financial resources. You may lose all or more of your initial investment. Opinions, market data, and recommendations are subject to change at any time. Past performance is not necessarily indicative of future results. I am not a financial advisor. The ideas presented in this video are for entertainment purposes only. You (and only you) are responsible for the financial decisions that you make.

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#OptionsTrading

[projectfinance]

Thank you so much for watching! I really hope you found this video valuable. There was a lot of content discussed here so feel free to ask questions and leave feedback below. I would love to hear from you!

-Chris

[eversunnyguy]

You are a great teacher of options. Plus your colorful slides are rich !.

[gabbys]

This is the best video explaining spreads and execution. Thank you for providing examples and live trading on the Tasty platform…

[petergilson]

As usual when you post something; a comprehensive, structured and informational explanation of what a bull call spread means. Thanks again Chris. After watching this, My big question mark is how to choose your trades and setup: How do you select good candidates for this strategy; what criteria, indicators, tools, ... do you use to set up your trade. And second; what is your exit strategy? It would be very helpful to know this to set up my own trades. Thanks again Chris and keep up the great work! Cheers, Peter

[JasonMattern]

That was one of the best explanations of spreads and break even prices that I’ve ever seen. Great video!

[trevongroup]

Thanks for the colorful and clear explanations for options trading.

One question though, at what delta do you consider to buy the call in a bull call spread?

[couldbanyone]

Thanks Chris, great video, very well explained. Your delivery is fantastic, keep up the good work.

[_Charlesp]

I have been trying to find your most up to date course that teaches options and options strategies in depth. Where can I find the paid course to learn?

[govinlala]

Thanks for the knowledge that builds our confidence level.

[javanegetten]

Your way of teaching is the best i have seen, i just wanted to know if you factor in tax when making these plays. Because once you are selling anything within a year, you will have to pay Capital gains tax.

[korolova]

Hey, Chris! Let's say the price rapidly dropped down, would it be ok to buy back the short position to lock some profit (of course if we expect the bounce back up), and then sell it again when the price goes up?

[kenearnest]

THANK YOU, I have started options trading and have watched so many you tube videos and yours is the first one that helped me understand with that "aha" moment if you know what I mean!

[ahmadibrahim]

Perfect video, i wish you included IMP volatility in this video to see how much will it affect.

[patricktst]

Great flow and well articulated. Can consider adding on a subtopic explaining the process and consideration of specifying the buy & sell leg based on stock price vs using option premium price.

[alexcheng]

Thanks for the nice, easy to understand explanation. Do we need to close the spreads before expiry, in the situations where the stock price is in between the strike prices, or if the stock price is below the lower call strike prices? Thanks!

[jeremyjohnson]

On March 5th, 2024, imagine if the MSTR calls were expiring in April or May?! Great video as usual! I think for many traders who tend to experience losses more then profits, the key is when to enter and when to exit, that’s the missing golden information.

[TomDeutsch]

Great job as usual, thanks for doing these.

[ossentoo]

thanks. very good explanation of the pros and cons between bull call spread and naked call optons

[marcelsnip]

Thank you, very informative. I fully understand the principles of a bull call spread but I struggle with choosing the days till expiration and the strike prices. Do you take the greeks into consideration for this and do you take at least 30 days dte? For riskmanagement I usually take a 10 point wide spread and then I look at risk to reward usually 1 : 2 at least.

[edchristianaguinaldo]

Can you close before expiration if you’re at a 80% profit?