Part 9 Trading Master Class

Bull Call Spread – Best for Mild Uptrend with Low Risk

This is a defined-risk bullish strategy.

How it works

Buy a lower strike call.

Sell a higher strike call to reduce cost.

When to use

You expect a moderate rise, not a major rally.

Premiums are expensive and you want to reduce cost.

Risk and reward

Risk: Limited to net premium paid.

Reward: Limited (difference between strikes – cost).

Example

Buy Nifty 22,000 CE at ₹120
Sell Nifty 22,200 CE at ₹50
Net cost = ₹70
Max profit = ₹200 – 70 = ₹130