A Bull Call Spread is a defined-risk, limited-reward options strategy used when a trader has a moderately bullish view on the underlying asset. It is constructed by buying a call option at a lower strike price and simultaneously selling a call option at a higher strike price, both with the same expiry. The premium received from selling the higher strike call partially offsets the cost of buying the lower strike call, reducing the net debit paid. Maximum profit is capped at the difference between the two strikes minus the net premium paid, achieved when the underlying closes at or above the short strike at expiry. Maximum loss is limited to the net premium paid — making it a capital-efficient way to express a bullish view with defined downside.
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