bull call spread calculator

This difference will result in additional fees, including interest charges and commissions. Assignment of a short call might also trigger a margin call if there is not sufficient https://www.bigshotrading.info/ account equity to support the short stock position. Volatility is a measure of how much a stock price fluctuates in percentage terms, and volatility is a factor in option prices.

TheMain Viewshows the Volume and Open Interest for each option, while the Dividend & Earnings View can be used to highlight strategies bull call spread calculator with upcoming dividends and earnings. The Filter view shows you the data contained in the field you’ve added to the screener.

Time Value of Money

Finally, the term “debit” refers to the fact that the strategy is created for a net cost, or net debit. A bull call spread rises in price as the stock price rises and declines as the stock price falls. Also, because a bull call spread consists of one long call and one short call, the net delta changes very little as the stock price changes and time to expiration is unchanged. In the language of options, this is a “near-zero gamma.” Gamma estimates how much the delta of a position changes as the stock price changes. Thus, the exercise price is a term used in the derivative market. Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Please read Characteristics and Risks of Standardized Options before investing in options.

On the morning of the Dividend Ex-Date, the stock’s price is lowered by the amount of the dividend that was just paid. You may switch the view using the links at the top of the screener results table.


The spread strategies are some of the simplest option strategies that a trader can implement. When I say multi leg strategies, it implies the strategy requires 2 or more option transactions. If the strike price rises much above the higher strike price, then the maximum profit is capped and starts acting as a liability on the trading position. Naked CallA naked call is a high-risk options strategy wherein the investor sells a call option without possessing the underlying stock.

bull call spread calculator

The bull put and call spreads are referred to as vertical spreads because the positions of the strike prices on a graph are vertically separated. A refiner is concerned about its upcoming maintenance schedule and needs to protect against decreasing crude oil prices and increasing heating oil prices. During the maintenance the refiner needs to continue providing customers with heating oil to meet their demands.

Valuing Common Stock using Discounted Cash Flow

Both the buy and the sell sides of the bear put spread strategy are opening transactions, and are always the same number of contracts. This spread is sometimes more broadly categorized as a “vertical spread”, which is a family of spreads involving options of the same stock and same expiration month, but different strike prices. They can be created with either all calls or all puts, and can be bullish or bearish. The bull call spread, as with any option spread, can be executed as a “unit” in one single transaction, but not as separate buy and sell transactions. For this bullish vertical spread, a bid and offer for the whole package can be requested through your brokerage firm from an exchange where the options are listed and traded. The losses and gains from the bull call spread are limited due to the lower and upper strike prices. If at expiry, the stock price declines below the lower strike price—the first, purchased call option—the investor does not exercise the option.

bull call spread calculator