Bull Call Spread Tutorial & Trade Examples ($30,000+ in Profits)
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- เผยแพร่เมื่อ 4 มิ.ย. 2024
- 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.
✅ [Free PDF Downloads] Options Trading for Beginners, Strategy Explanation Library, and Bonus PDFs: geni.us/options-trading-pdf
==== 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)
🔥 Learn data-driven options strategies to improve your odds of making money long-term with options: geni.us/options-course
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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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![Bull Call Spread TUTORIAL [Vertical Spread Options Strategy]](/img/n.gif)
✅Get the accompanying PDF here: geni.us/options-trading-pdf
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
Im subscriber to your teachable. But what i really like to know is, how do anticipate the moves, rather then the technical Options Strats
Hi Chris, how do you choose and select your trades (what underlying stocks) and setup (what option strategy): 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.
You are a great teacher of options. Plus your colorful slides are rich !.
Thank you for the comment! I appreciate your feedback
Thanks for the knowledge that builds our confidence level.
Thanks Chris, great video, very well explained. Your delivery is fantastic, keep up the good work.
Great job as usual, thanks for doing these.
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?
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!
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
This is the best video explaining spreads and execution. Thank you for providing examples and live trading on the Tasty platform…
Thank you for the comment! I appreciate that and I’m glad it was a helpful format for you.
That was one of the best explanations of spreads and break even prices that I’ve ever seen. Great video!
Awesome I’m glad to hear it! Thank you for the support and comment 🙏🏼
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.
Perfect video, i wish you included IMP volatility in this video to see how much will it affect.
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.
Thank you sir for this great video.
You’re welcome thanks for watching!
Thanks
sister tip off, love it
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?
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!
Thanks for watching! Yes I would recommend closing the spreads before expiration, especially if only one call is ITM or the stock is anywhere close to the long strike if it’s OTM.
In those cases it is better to do a DIAGONAL LEAPS CALL , like 180DTE buy call and selling call at delta 30 every month?
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.
Right! Luckily I still have naked 850 calls in DEC 2025! So far so good.
Entering and exiting trades is key info for sure, and that's not a topic that is black and white because every situation is different. Entering trades is based on a prediction/thesis and having conviction in that thesis. Without conviction, I think it's very hard to enter trades, and especially hold them through profits and losses. In this case, my thesis is it's the start of a bitcoin bull run and there are many positive catalysts that can drive the price way higher, bringing MSTR along with it. As the BTC price goes up, my conviction in holding the option plays will diminish, but it's my opinion that there's a long way to go.
@projectfinance holy shiii! I'm jealous lol. Keep on killin it!
Need video for bull call spread adjustment sir
so, looong i didnt received your videos!!! pelase do more!
Working on more!
Do you offer one on one training?
How much margin it required for one bull call spread?
The cost/risk of the spread. So if you buy a 100 call for $500 and sell a 105 call for $200, the net cost/risk is $300. That is the margin requirement.
How can you prove that you didn’t get lucky that your stock just went up 30 percent while holding the spread? I mean sounds like a very risky trade, what about in the money spreads?
Regarding the previous post: I am aware that if a counterparty were to early-exercise my short leg they would be paying extrinsic value - people, however, do stupid things.
And you would benefit by the amount of extrinsic value. It would be a blessing to get assigned on an option with lots of extrinsic value as the benefit accrues to you