Bull Call Spread Calculator
Calculate max profit, max loss, and breakeven for a bull call spread.
Enter the two strike prices and net premium to see the full P&L diagram at expiration.
Max Profit
Bull Call Spread
A bull call spread is a defined-risk options strategy used when you are moderately bullish on a stock. You buy a call at a lower strike (K1) and sell a call at a higher strike (K2) with the same expiration. The premium received for the sold call reduces the cost of the bought call.
Key levels:
| Metric | Formula |
|---|---|
| Net Premium Paid | Buy premium - Sell premium |
| Breakeven | Lower strike (K1) + Net premium paid |
| Max Profit | (K2 - K1 - Net premium) × 100 per contract |
| Max Loss | Net premium paid × 100 per contract |
P&L at expiration:
- Stock at or below K1: Full net premium lost (max loss)
- Stock between K1 and K2: Partial profit — P&L = (S - K1 - Net premium) × 100
- Stock at or above K2: Maximum profit locked in
Example:
- Buy 150 call at $8.00, sell 160 call at $3.00
- Net premium = $8.00 - $3.00 = $5.00 per share ($500 per contract)
- Breakeven = 150 + 5 = $155
- Max profit = (160 - 150 - 5) × 100 = $500 per contract
- Max loss = $500 per contract
Why use a bull call spread instead of buying a call outright?
- Costs less — the sold call offsets part of the premium
- Defined risk and defined reward — you know your max loss upfront
- Tradeoff: you cap your upside at K2, giving up gains above that level
When to use it:
- Moderately bullish — you expect the stock to rise but not dramatically
- Implied volatility is high — selling a call helps offset expensive premiums
- You want defined risk rather than unlimited upside
This strategy has a maximum risk-to-reward ratio that is known before entry.