Bull Call Spread Calculator
Model a bull call spread with two strikes. See net debit, max profit, max loss, and the P&L payoff diagram.
A bullish debit spread: buy a call at a lower strike and sell a call at a higher strike. Limits both your max profit and max loss. Lower cost than a naked long call.
Strategy Legs
How to Calculate a Bull Call Spread
A bull call spread is a debit spread that profits from a moderate rise in the stock. You buy a call at a lower strike and sell a call at a higher strike, both with the same expiration. The sold call reduces your cost but caps your upside at the upper strike.
This is the go-to strategy when you're bullish but think the stock has a ceiling — like a resistance level, round number, or upcoming event that might cap gains. It costs less than a naked long call, which means your breakeven is lower and you need less movement to profit.
The calculator shows net debit (your cost and max loss), max profit (the spread width minus the debit), and the breakeven price. The P&L chart shows the classic capped-profit shape — flat loss below the lower strike, profit rising between strikes, flat max profit above the upper strike.
Formula
Net Debit = Lower Call Premium − Upper Call Premium. Max Profit = (Upper Strike − Lower Strike − Net Debit) × 100. Max Loss = Net Debit × 100.
Example
MSFT is trading at $420. You're bullish to $440. You buy the $420 call for $8.00 and sell the $430 call for $4.00.
Net debit = $8 − $4 = $4.00 ($400 per spread). Max profit = ($430 − $420 − $4) × 100 = $600. Max loss = $400 (the debit). Breakeven = $420 + $4 = $424. You need MSFT to hit $424 to break even — only a 1% move. At $430+, you make $600 on a $400 investment — a 150% return.
Frequently Asked Questions
Why use a bull call spread instead of just buying a call?
Three reasons: lower cost (the short call offsets part of the premium), lower breakeven (you need less movement to profit), and reduced theta decay (the short call decays in your favor, partially offsetting the long call's decay). The tradeoff is capped upside — if the stock rockets past your upper strike, you miss the extra profit.
How wide should I make the spread?
Wider spreads have higher max profit but cost more and need bigger moves. Narrow spreads cost less but cap profit quickly. A good rule: set the upper strike at a realistic price target within your timeframe. If you think the stock can move $10, use a $10-wide spread.
What happens if the stock moves past both strikes?
Both options finish in the money. The long call is exercised (you buy shares at the lower strike) and the short call is assigned (you sell shares at the upper strike). The net result is the difference in strikes minus your debit. Most brokers handle this automatically — you just receive the max profit and both positions close.
Related Calculators
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Disclaimer: This calculator is for educational purposes only and does not constitute financial advice. Trading involves substantial risk of loss. Past performance does not guarantee future results. Always do your own research and consult with a licensed financial advisor before making investment decisions.