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    Bull-Call Spread

    Uploaded by

    Arunangshu Bhattacharjee
    A bull call spread involves buying a call option with a lower strike price while simultaneously writing (selling) a call option with a higher strike price. The strategy allows for moderate gains if the underlying asset's price increases and is limited in risk. The maximum profit is achieved if the underlying price is above the higher strike price at expiration, while losses are limited to the net debit paid to open the position.

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    © All Rights Reserved
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    Bull-Call Spread

    Uploaded by

    Arunangshu Bhattacharjee
    55 views4 pages
    A bull call spread involves buying a call option with a lower strike price while simultaneously writing (selling) a call option with a higher strike price. The strategy allows for moderate gains if the underlying asset's price increases and is limited in risk. The maximum profit is achieved if the underlying price is above the higher strike price at expiration, while losses are limited to the net debit paid to open the position.

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    Bull-Call_spread.xlsx

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    A bull call spread involves buying a call option with a lower strike price while simultaneously writing (selling) a call option with a higher strike price. The strategy allows for moderate gains if the underlying asset's price increases and is limited in risk. The maximum profit is achieved if the underlying price is above the higher strike price at expiration, while losses are limited to the net debit paid to open the position.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    55 views4 pages

    Bull-Call Spread

    Uploaded by

    Arunangshu Bhattacharjee
    A bull call spread involves buying a call option with a lower strike price while simultaneously writing (selling) a call option with a higher strike price. The strategy allows for moderate gains if the underlying asset's price increases and is limited in risk. The maximum profit is achieved if the underlying price is above the higher strike price at expiration, while losses are limited to the net debit paid to open the position.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Download as xlsx, pdf, or txt
    You are on page 1of 4

    Strategy Name Bull Call Spread

    Number of option legs Two


    Direction Moderatly Bullish
    Bull Call Spread
    Particular Value Legend
    Underlying Nifty LS - IV Lower Strike Intrensic value
    Spot Price 7846 PP Premium Paid
    Lower Strike (LS) 7800 LS Payof Payof from Lower strike
    Higher Strike (HS) 7900 HS IV Higher Strike Intresic value
    Debit (LS) 79 PR Premium Received
    Credit (HS) 25 HS Payof Payof from Higher strike
    Net 54

    Calculations
    Market Expiry LS - IV PP LS Payof HS - IV
    7000 0 -79 -79 0
    7100 0 -79 -79 0
    7200 0 -79 -79 0
    7300 0 -79 -79 0
    7400 0 -79 -79 0
    7500 0 -79 -79 0
    7600 0 -79 -79 0
    7700 0 -79 -79 0
    7800 0 -79 -79 0
    7900 100 -79 21 0
    8000 200 -79 121 100
    8100 300 -79 221 200
    8200 400 -79 321 300
    8300 500 -79 421 400
    8400 600 -79 521 500
    8500 700 -79 621 600
    ke Intrensic value

    m Lower strike
    ike Intresic value

    m Higher strike

    PR HS Payof Strategy Payof


    25 25 -54
    25 25 -54
    25 25 -54 Bull Call Spread Payof
    25 25 -54
    60
    25 25 -54
    25 25 -54
    40
    25 25 -54
    25 25 -54 20
    25 25 -54
    25 25 46 0
    25 -75 46
    7200

    7300

    7400

    7600

    7700

    7800

    7900

    8000

    8200

    8300

    8400
    7000

    7100

    7500

    8100

    8500
    25 -175 46 -20
    25 -275 46
    25 -375 46 -40
    25 -475 46
    25 -575 46 -60
    8000

    8100

    8200

    8300

    8400

    8500

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